Three prominent figures in American sports have reached a settlement to collectively pay $2.42 million in response to allegations that they contributed to the promotion of the failed cryptocurrency exchange Voyager Digital.
According to a class action settlement that was filed on May 3, retired NFL star Rob “Gronk” Gronkowski will pay the largest portion of $1.9 million. NBA player Victor Oladipo will pay $500,000, and NASCAR driver Landon Cassill will pay $25,000. All three sports stars have agreed to the settlements without admitting or denying any of the accusations.
The proposed settlement includes 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 approving the $2.4 million settlement, the plaintiffs also intend to seek an award of attorney fees totaling 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.
Investor’s legal representative Adam Moskowitz stated that the settlements are largely attributed to the athletes’ desire to assist their fans. “Gronk genuinely empathized with all of his fans, even though he also lost money with Voyager. It’s no surprise that he continues to be such a trusted and respected spokesperson,” he told Law360.
A group of investors initiated the class action against Dallas Mavericks owner Mark Cuban in 2022, subsequently including Gronkowski and other Voyager promoters in 2023.
The settlements were reached through mediation with the aim of addressing two main concerns – whether the Voyager products were unregistered securities and whether the promoters solicited investors.
The crypto trading platform filed for bankruptcy in July 2022 due to the impact of market turmoil following 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.
Prominent NBA, football, and NASCAR celebrities surrender $2.4 million in Voyager promotional legal case.