Three prominent figures in American sports have come to an agreement to collectively pay $2.42 million to settle allegations related to their involvement in promoting the failed cryptocurrency exchange Voyager Digital. The settlement, which was filed as a class action settlement on May 3, states that retired NFL star Rob “Gronk” Gronkowski will pay the largest share of $1.9 million. NBA player Victor Oladipo will pay $500,000, and NASCAR driver Landon Cassill will pay $25,000. All three athletes have agreed to the settlements without admitting or denying any of the accusations made against them.
The proposed settlement encompasses all U.S. individuals who enrolled in a Voyager Earn Program Account or purchased VGX tokens between October 2019 and the preliminary approval date. In addition to the $2.4 million settlement, the plaintiffs also intend to request attorney fees amounting to approximately $792,000.
Gronkowski, who launched an NFT collection in 2021, became a Voyager partner, “brand ambassador,” shareholder, and VGX tokenholder in September 2021, as stated in a press release at the time.
Adam Moskowitz, the legal representative for the investors, attributed the settlements to the athletes’ genuine desire to assist their fans. He commented, “Gronk had a sincere empathy for all of his fans, even though he lost money with Voyager as well. It is no surprise he continues to be such a trusted and respected spokesperson,” in an interview with Law360.
The class action was filed by a group of investors in 2022 against Mark Cuban, the owner of the Dallas Mavericks, and later included Gronkowski and other Voyager promoters in 2023.
The settlements were reached through mediation, with the aim of addressing two main issues: whether the Voyager products constituted unregistered securities and whether the promoters had solicited investors.
Voyager Digital, the crypto trading platform, filed for bankruptcy in July 2022 following the market turbulence caused by the Terra/Luna collapse in May and the default of loans to the Three Arrows Capital (3AC) hedge fund.
In April, Voyager Digital made progress in compensating its creditors by securing $484 million through settlements with FTX, Three Arrows Capital, and Directors and Officers (D&O) insurance claims.
Magazine: Is the billions spent on marketing crypto to sports fans worth it?