The collapse of the crypto lender has the NBA playing defense
The NBA is being sued over its marketing deals with the now-collapsed Voyager Digital cryptocurrency lender, which users claim led to over $4.2 billion in losses.
The over 100-page complaint filed in a Miami district court on February 6 alleges the NBA was “grossly negligent” when it endorsed Voyager’s promotional agreement with the Dallas Mavericks.” It describes the marketing efforts by the two firms and accuses that the NBA was to “serve as the ‘gatekeeper.'”
“This lawsuit simply seeks to hold the NBA liable,” declared the class group. “The NBA’s widespread promotion of Voyager’s unregistered securities renders it liable for any and all resulting damages.”
The accusers also say the NBA “deliberately decided to embrace the risks” of collaborating with crypto exchanges such as Coinbase, FTX and Voyager and received “billions in promotional compensation” while facing “empty arenas and the loss of billions in television revenues” during the COVID-19 pandemic.
McCarter & English, Voyager’s law firm, is also named in the lawsuit, which alleges it leveraged its credibility to give “a bogus ‘Legal Opinion'” that the Voyager token wasn’t unregistered security and “assuage the concerns of potential investors and partners” that Voyager’s operations were “entirely above board.”
The same group of plaintiffs filed a suit against Dallas Mavericks’ former owner, Mark Cuban, in 2022, accusing him of promoting Voyager and misrepresenting how secure it was, which Cuban rejects. That suit’s “extensive discovery” made it “now apparent” that the plaintiffs needed to broaden the litigation to include McCarter & English and the NBA.
Voyager suspended withdrawals and filed for bankruptcy in July 2022 due to its vulnerability to the defunct Three Arrows Capital (3AC) crypto hedge fund.
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
