High-Profile Sports Figures Settle in Voyager Digital Promotion Case
In a significant development within the cryptocurrency sphere, three renowned American sports figures have agreed to a collective settlement of $2.42 million over allegations linked to their promotion of the now-defunct cryptocurrency exchange, Voyager Digital.
Details of the Settlement
The settlement, documented in a class action agreement on May 3, involves retired NFL icon Rob “Gronk” Gronkowski, NBA star Victor Oladipo, and NASCAR professional Landon Cassill. According to the agreement, Gronkowski will contribute the lion’s share of $1.9 million, followed by Oladipo with $500,000, and Cassill with $25,000.
It’s important to note that all parties involved have consented to the settlement without admitting to or denying the allegations against them. This agreement encompasses all U.S. individuals who either signed up for a Voyager Earn Program Account or purchased VGX tokens from October 2019 until the date of preliminary approval.
The plaintiffs in this case are also expected to request an award of attorney fees amounting to approximately $792,000, further adding to the financial implications of the settlement.
The Role of Sports Personalities in Crypto Promotions
Adam Moskowitz, representing the investors, commented on the empathetic stance of the athletes, particularly Gronkowski, towards their fans. “Gronk had a sincere empathy for all of his fans, even though he lost money with Voyager as well. It is no surprise he continues to be such a trusted and respected spokesperson,” Moskowitz shared with Law360.
This case also roped in other high-profile promoters including Dallas Mavericks owner Mark Cuban, reflecting the broad and influential reach of celebrity endorsements in the crypto industry.
Background of Voyager Digital’s Downfall
In efforts to mitigate losses and address creditor claims, Voyager Digital recently managed to secure $484 million through settlements involving FTX, Three Arrows Capital, and claims against its Directors and Officers (D&O) insurance.
Implications for the Future of Crypto Endorsements
For further insights into the intersection of sports and cryptocurrency marketing, explore the detailed analysis in our feature on the marketing dynamics within the crypto space.
Moreover, the broader implications of celebrity involvement in crypto promotions are discussed in our coverage of Tom Brady’s roast on crypto in a Netflix special, highlighting the growing mainstream attention and critique of celebrity-driven crypto ventures.
This case not only underscores the financial stakes involved but also highlights the need for clearer guidelines and ethical standards in crypto endorsements, ensuring that both promoters and investors can navigate this burgeoning market with greater confidence and security.
