Three American sports personalities, Rob Gronkowski, Victor Oladipo, and Landon Cassill, have agreed to collectively pay $2.42 million to settle allegations in the Voyager promotion case. The settlement provides a detailed look at the financial implications and legal aspects of their involvement. Gronkowski agreed to pay the highest amount, $1.9 million, while Oladipo settled for $500,000, and Cassill agreed to pay $25,000. The plaintiffs are also seeking $792,000 in attorney fees in addition to the settlement. The settlement was negotiated through mediation to determine if Voyager’s products were unregistered securities and if the promoters solicited investors improperly.
Voyager Digital filed for bankruptcy in July 2022 due to severe market turmoil caused by the collapse of Terra/Luna and the default of loans to the Three Arrows Capital hedge fund. This led to the exchange’s downfall. In April 2024, Voyager took steps to compensate creditors by securing $484 million through settlements with FTX, Three Arrows Capital, and Directors and Officers insurance claims. The settlement covers about 25% of Voyager creditors’ total claims and is expected to be distributed soon. Voyager has also secured a claim of about $675 million from litigation with Three Arrows Capital.
While the sports personalities have agreed to settle the case, the main defendant, Mark Cuban, has not come to the table yet. Cuban, the minority owner of the Dallas Mavericks, is scheduled to begin trial in November 2024 for his involvement in promoting Voyager’s Earn Program Accounts, which were classified as unregistered securities. Cuban and the NBA are facing a lawsuit for alleged gross negligence in their marketing partnership with the defunct crypto exchange. The trial against Cuban and the Dallas Mavericks is set for November 2024. The NBA’s decision to support the partnership has received criticism, with suggestions for a ban on crypto sponsorships.
The settlement involving Gronkowski, Oladipo, and Cassill gives insight into the financial implications and legal aspects of their involvement in promoting the defunct crypto exchange Voyager. Gronkowski, as a partner, VGX token holder, shareholder, and ambassador for the exchange, agreed to pay the highest amount of $1.9 million. Oladipo settled for $500,000, and Cassill agreed to pay $25,000. The plaintiffs are also seeking attorney fees of $792,000 in addition to the settlement. The settlement was reached through mediation to determine the status of Voyager’s products and whether the promoters improperly solicited investors.
The class action lawsuit against Voyager and its promoters, including Gronkowski, Oladipo, and Cassill, sheds light on the legal implications of promoting unregistered securities in the crypto industry. As Voyager faced financial troubles and eventually filed for bankruptcy in July 2022, the settlement with the three sports personalities is a step towards compensating creditors. While the settlement covers a significant portion of the creditors’ claims, there are ongoing lawsuits against other defendants, including Mark Cuban and the Dallas Mavericks. The trial against Cuban for his involvement in promoting Voyager’s unregistered securities is set to begin in November 2024, highlighting the legal consequences of such partnerships in the crypto industry.
