The NBA Faces $4.2 Billion Lawsuit Over Promotion of Defunct Crypto Exchange
The NBA is facing a lawsuit filed by investors who claim that the association’s partnership with Voyager Digital Holdings Inc., a now-defunct cryptocurrency exchange, caused them financial damages amounting to $4.2 billion. The lawsuit specifically targets the NBA’s promotional agreement with Voyager and Mark Cuban, the former majority owner of the Dallas Mavericks.
This legal action follows a previous lawsuit against Cuban, accusing him of endorsing a fraudulent and unregulated venture. Investors alleged that Cuban’s representations about Voyager’s security assurances led to their financial losses. However, Cuban has vehemently denied these accusations.
In addition to the lawsuit against Cuban, the Commodity Futures Trading Commission has taken legal action against Stephen Ehrlich, co-founder of Voyager, for deceptive practices in managing a digital asset trading and custody platform. Ehrlich claims that he is being made a scapegoat for others’ misconduct.
NBA Teams’ Involvement in Cryptocurrency Promotions
This lawsuit sheds light on a larger trend within the NBA where teams engage in promotional activities with cryptocurrency entities. One such entity is FTX exchange, which faced collapse and resulted in fraud convictions for its founder, Sam Bankman-Fried.
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