The NBA and Crypto- Lawsuits Fly Amidst Failed Exchange Voyager’s Collapse

vestors Sue NBA and Law Firm Over Marketing Ties to Voyager

The crypto exchange Voyager Digital’s mighty downfall in 2022 continues to reverberate, with legal repercussions entangling the National Basketball Association and others. Investors, reeling from losses that exceed $4.2 billion, have filed a lawsuit against the NBA, alleging its marketing association with Voyager contributed to their financial woes. This lawsuit is not the only one stemming from Voyager’s collapse. Mark Cuban, the former owner of the Dallas Mavericks who actively promoted the exchange, is also facing legal challenges.

Accusations Against the NBA

The lawsuit against the NBA paints a damning picture, accusing the league of gross negligence for its involvement with Voyager. It alleges that the NBA, eager to capitalize on the growing crypto market, approved a marketing deal between Voyager and the Mavericks, which led to its brand’s credibility to the exchange. This endorsement allegedly included displaying Voyager ads in the Mavericks’ arena, possibly aiming to become a leader in crypto promotions through backing both Voyager and FTX, another now-defunct exchange.

The lawsuit argues that by promoting Voyager to the public, the NBA associated itself with billions of dollars in unregistered and illegal securities. This accusation is based on whether Voyager’s offerings, specifically its VGX token, constituted securities- a complex legal question with significant financial implications.

Mark Cuban and Voyager’s Law Firm Under Fire

Mark Cuban, a high-profile figure in the sports and business world, also faces legal scrutiny for his association with Voyager. Investors claim he misled them about the exchange’s safety and stability and painted a rosy picture while allegedly knowing about potential risks. CubaInn has vehemently denied these accusations, further complicating the narrative.

To further add to the legal dilemma, Voyager’s law firm, McCarter & English, is also being accused of issuing fraudulent legal opinions that downplayed the risks associated with the exchange’s offerings. The lawsuit alleges that the firm deliberately misled investors by claiming the VGX token was not a security and hence influenced investment decisions. McCarter & English maintains they provided only clear and competent advice and intends to defend itself in court.

Wider Implications and Ongoing Developments

This lawsuit against the NBA is part of a growing trend in the aftermath of the crypto market crash. Celebrities and organizations that endorsed various crypto ventures are facing legal challenges from investors who allege they were misled or misinformed. These cases raise crucial questions about celebrity endorsements, financial literacy, and the responsibility of platforms like the NBA in navigating the complex and often volatile world of cryptocurrency.

As of February 9, 2024, the lawsuit against the NBA and McCarter & English is still in its early stages. The court will need to carefully examine the evidence and weigh the validity of the claims before reaching any conclusions. This case has the potential to significantly impact the NBA’s future involvement in the crypto space, set precedents for celebrity endorsements, and influence how companies and individuals approach investment recommendations.


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