US Sports Stars to Pay $2.42M in Failed Crypto Exchange Settlement
Summary:
Three renowned US sports stars, Rob “Gronk” Gronkowski, Victor Oladipo, and Landon Cassill, have consented to pay a collective $2.42 million to resolve allegations of their involvement in promoting the unsuccessful cryptocurrency exchange Voyager Digital. The settlement applies to any US individual who bought VGX tokens or enrolled in a Voyager Earn Program from October 2019 until the date of preliminary approval. Voyager Digital filed for bankruptcy in July 2022 but managed to secure settlements amounting to $484 million in April to compensate its creditors.
Three eminent US sports figures have resolved to jointly dish out $2.42 million to settle claims implicating them in the marketing of the unsuccessful cryptocurrency exchange, Voyager Digital. Based on a class action resolution forwarded on May 3, Rob “Gronk” Gronkowski, a retired NFL legend, is set to contribute the largest slice of $1.9 million. NBA athlete Victor Oladipo's stake amounts to $500,000 and NASCAR racer Landon Cassill will contribute $25,000. None of the athletes have admitted or rejected any allegations while agreeing to the settlements. All US citizens who either purchased VGX tokens or registered for a Voyager Earn Program account from October 2019, until the date of preliminary approval, are incorporated in the proposed settlement.
Moreover, aside from sanctioning the $2.4 million settlement, the plaintiffs also intend to request a remuneration for legal services roughly amounting to $792,000. In a press release dating back to September 2021, Gronkowski, also the founder of an NFT collection in 2021, was associated with Voyager as a partner, "brand ambassador", shareholder and a proud owner of VGX tokens.
Adam Moskowitz, representing the investors on the legal front, attributed the settlements to the athletes’ genuine concern for their fans. Gronkowski's earnest compassion for his fans remains evident, despite his own financial loss with Voyager. His reputation as a trusted spokesperson persists, Moskowitz confided to Law 360.
In 2022, a consortium of investors brought forward a class action against Mark Cuban, owner of Dallas Mavericks, appending Gronkowski and other Voyager promoters in 2023. The settlements were bargained through mediation with an intent to address two major concerns: whether the Voyager products were unlicensed securities or whether the promoters attracted investors.
Voyager Digital filed for bankruptcy protection in July 2022, following the instability in the marketplace caused by the Terra/Luna collapse in May and the nonpayment of loans to the Three Arrows Capital (3AC) hedge fund. However, in April, Voyager Digital managed to bring relief to its creditors through settlements amounting to $484 million with FTX, Three Arrows Capital, and Directors and Officers (D&O) insurance claims.
Published At
5/8/2024 8:22:31 AM
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