[ad_1]
Key Takeaways
- The NBA is sued due to allegations of negligence in approving marketing deals with Voyager Digital, which has led to investor losses exceeding $4.2 billion.
- Plaintiffs argue that the NBA’s widespread promotion of Voyager makes it liable for investors’ financial damages.
- The NBA and Voyager’s law firm have yet to issue public statements in response to the allegations.
A class-action lawsuit targets the National Basketball Association (NBA) for promoting the bankrupt cryptocurrency brokerage firm Voyager Digital, with investors alleging losses surpassing $4.2 billion.
The origins of the lawsuit can be traced back to a previous legal dispute in 2022 involving Mark Cuban, the former owner of the Dallas Mavericks, who was accused of misrepresenting Voyager and using his influence to lure investors.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe – We publish new crypto explainer videos every week!
Cuban was sued after Voyager initiated bankruptcy due to unsuccessfully loaning money to the cryptocurrency hedge fund Three Arrows Capital (3AC).
The lawsuit, filed in a Miami district court on February 6, claims that the NBA knowingly took the risk of associating with cryptocurrency exchanges, such as Voyager Digital, FTX, or Coinbase, to receive “billions in promotional compensation”, therefore failing to fulfill its responsibility of acting as a gatekeeper when accepting such deals.
The class group calls such actions of the NBA “grossly negligent” and argues:
The NBA’s widespread promotion of Voyager’s unregistered securities renders it liable for any and all resulting damages.
Plaintiffs also state that Voyager’s law firm, McCarter & English, allegedly provided a misleading “Legal Opinion” about the status of Voyager’s token, thereby contributing to investor and partner concerns being downplayed.
As the legal proceedings unfold, both the NBA and McCarter & English have yet to issue public statements addressing the allegations.
This legal battle sparks concerns about financial responsibility and investor protection. As the lawsuit progresses, the NBA’s role and response will be closely scrutinized.
It is not the first time that Voyager Digital has been in hot water. In 2023, the crypto lender was also publicly criticized by The United States Commodity Futures Trading Commission (CFTC).
Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
[ad_2]
Source link
