Three prominent American sports figures have collectively agreed to pay $2.42 million to settle allegations related to their promotion of the failed cryptocurrency exchange Voyager Digital.
Retired NFL star Rob “Gronk” Gronkowski will contribute the largest sum, amounting to $1.9 million, followed by NBA player Victor Oladipo with $500,000 and NASCAR driver Landon Cassill with $25,000. The athletes have agreed to the settlements without admitting or denying 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.
In addition to approving the $2.4 million settlement, plaintiffs intend to seek attorney fees totaling around $792,000.
Gronkowski, who became a Voyager partner and brand ambassador in September 2021, played a significant role in the settlement negotiations. Investor legal representative Adam Moskowitz emphasized the athletes’ desire to assist their fans, noting Gronkowski’s empathy despite incurring losses with Voyager.
The class action lawsuit, initially filed against Dallas Mavericks owner Mark Cuban in 2022, expanded to include Gronkowski and other Voyager promoters in 2023. Settlement negotiations aimed to address concerns regarding the registration status of Voyager products and allegations of soliciting investors.
Voyager Digital filed for bankruptcy in July 2022 following market turbulence triggered by events such as the Terra/Luna collapse and defaults on loans to the Three Arrows Capital hedge fund. However, in April, Voyager made strides toward compensating creditors by securing $484 million through settlements with FTX, Three Arrows Capital, and Directors and Officers insurance claims.
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