NBA sued for transaction links with crypto lender Voyager Digital
The National Basketball Association (NBA) is now facing a proposed class-action lawsuit over its marketing deals with collapsed crypto lender Voyager Digital, which has cost users of the platform more than $4.2 billion.
The NBA was “grossly negligent” in approving Voyager's promotional deal with the Dallas Mavericks, he claims in the more than 100-page lawsuit filed in Miami District Court. The filing details the transaction between the two organizations and says the NBA is “intended to serve as the ‘gatekeeper'.”
“This lawsuit seeks only to hold the NBA accountable,” the class says. “The NBA's wide distribution makes Voyager's promotion of unregistered warranties liable for any and all damages.”
Plaintiffs also claim that the NBA “intentionally decided to accept the risk of working with crypto exchanges such as Voyager, Coinbase and FTX and “billions in advertising compensation” in the face of “empty stadiums and billions in television revenue losses”. The lawsuit.
Voyager partners with @dallasmavs as their official crypto broker and global partner.
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— Voyager (@investvoyager) October 27, 2021
Voyager law firm McCarter & English is also named in the suit. The firm claims that the Voyager token is not an unregistered security and that Voyager's offerings are completely above board, using its credibility to make a “false ‘legal opinion'.”
In the year In 2022, the same group sued Mark Cuban, the former owner of the Dallas Mavericks, for promoting Voyager and misrepresenting its reliability, which Cuban denied. The “broad discovery” of that lawsuit made it “now clear” that the class action should expand its lawsuit to the NBA and McCarthy and English.
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Voyager halted withdrawals in early July 2022 and filed for bankruptcy that same month due to exposure to crypto hedge fund Three Arrows Capital (3AC).
After FTX collapsed in late 2022, several lawsuits were filed against celebrities, sports stars, and sports organizations for collaborating with crypto companies.
The Mercedes F1 team, Major League Baseball, football star Tom Brady, NBA star Steph Curry, basketball commentator Shaquille O'Neal, comedian Larry David and many others have been sued for their association with FTX.
The NBA and McCarthy and English did not immediately respond to a request for comment.
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