Three notable American sports figures have agreed to collectively pay $2.42 million to resolve allegations related to their involvement in promoting the failed cryptocurrency exchange Voyager Digital.
According to a class action settlement filed on May 3, retired NFL star Rob “Gronk” Gronkowski will contribute the largest share, amounting to $1.9 million. NBA player Victor Oladipo has agreed to pay $500,000, while NASCAR driver Landon Cassill will pay $25,000. All three athletes have agreed to the settlements without admitting or denying any of the accusations.
The proposed settlement encompasses all U.S. individuals who participated in a Voyager Earn Program Account or purchased VGX tokens from October 2019 to the preliminary approval date. Additionally, plaintiffs intend to seek attorney fees of approximately $792,000 as part of the settlement.
Gronkowski, who launched an NFT collection in 2021, became a Voyager partner, brand ambassador, shareholder, and VGX tokenholder in September 2021, as indicated in a press release at the time.
Investor’s legal representative Adam Moskowitz attributed the settlements largely to the athletes’ desire to assist their fans. He highlighted Gronkowski’s empathy for his fans and his willingness to continue as a trusted spokesperson despite incurring losses with Voyager.
The class action was initially filed against Dallas Mavericks owner Mark Cuban in 2022, with Gronkowski and other Voyager promoters added in 2023. The settlements were reached through mediation, aiming to address whether Voyager products were unregistered securities and whether promoters solicited investors.
Voyager Digital filed for bankruptcy in July 2022 due to market turmoil following the Terra/Luna collapse in May and default on loans to the Three Arrows Capital (3AC) hedge fund.
In April, Voyager 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.
May 2024, Cryptoniteuae
