- Three American sports celebrities have agreed to pay a combined $2.425 million in a settlement related to the now-defunct cryptocurrency exchange, Voyager Digital.
- Retired NFL star Rob Gronkowski will contribute the largest share of the settlement, paying $1.9 million, while NBA player Victor Oladipo and NASCAR driver Landon Cassill will pay $500,000 and $25,000 respectively.
- The settlement comes as part of a class action lawsuit, with the remaining defendants, Mark Cuban and the Dallas Mavericks, set to face trial in November 2024.
Three American sports celebrities, including Rob Gronkowski, Victor Oladipo, and Landon Cassill, have agreed to pay a total of $2.425 million in a settlement over allegations of promoting the bankrupt cryptocurrency exchange, Voyager Digital. The settlement is part of a broader class action lawsuit, with further trials set for November 2024.
Details of the Settlement
According to the publicized agreement, the three sports celebrities have agreed to the settlement without admitting or denying the allegations against them. Gronkowski, who served as a Voyager partner, brand ambassador, shareholder, and VGX tokenholder, will pay the lion’s share of the settlement at $1.9 million. Reports suggest that Gronkowski agreed to pay the settlement out of empathy for his fans, despite losing money himself with the defunct crypto exchange.
Oladipo and Cassill’s Contributions
Oladipo and Cassill will contribute $500,000 and $25,000 respectively to the settlement. The agreement stipulates that the total sum will provide relief to individuals in the U.S. who enrolled in the Voyager Earn Program Account or purchased VGX tokens from October 2019 to the preliminary approval date.
Voyager’s Bankruptcy and Class Action Lawsuit
Voyager filed for Chapter 11 bankruptcy protection in early July 2022, leading to the commencement of a class action lawsuit in August of the same year. The lawsuit, entitled Dominik Karnas, et al. v. Mark Cuban, et al., added claims against the settling defendants at the end of October. The plaintiffs plan to request an additional $792,000 in settlement for attorney fees incurred in the litigation process. The settlements were negotiated through mediation, aiming to resolve whether Voyager products were unregistered securities and if the promoters solicited investors.
Conclusion
The settlement marks a significant development in the ongoing class action lawsuit against Voyager Digital. With the three sports celebrities’ settlements, attention now turns to the remaining defendants, Mark Cuban and the Dallas Mavericks, who are set to face trial in November 2024. The case serves as a reminder of the potential legal pitfalls associated with promoting cryptocurrency products.
