Three prominent athletes have reached a settlement with investors who claimed they were misled by endorsements for the now-bankrupt crypto firm Voyager Digital. According to a June 10th filing in the Southern District of Florida court, NFL star Rob Gronkowski, NBA player Victor Oladipo, and NASCAR driver Landon Cassill have received preliminary approval to settle the class-action lawsuit for a combined $2.4 million.
Gronk Takes the Biggest Hit
The settlement details reveal a tiered payment structure. Gronkowski, who served as a brand ambassador and shareholder for Voyager, will contribute the most at $1.9 million. Oladipo, who promoted the platform, will pay $500,000, while Cassill’s contribution is set at $25,000.
Lawsuit Origins and Scope
The lawsuit stemmed from allegations that Voyager misled investors about its services, causing financial losses when the company declared bankruptcy. Initially filed against former Dallas Mavericks owner Mark Cuban in 2022, the settlement only covers Gronkowski, Oladipo, and Cassill. Cuban and the Mavericks remain embroiled in the legal battle.
This civil case is separate from ongoing legal proceedings involving Voyager’s bankruptcy. The company has faced challenges related to funds held by Three Arrows Capital and the collapsed FTX exchange.
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Voyager’s Tangled Legal Web
In April, FTX agreed to relinquish rights to $450 million in funds used to compensate Voyager creditors. Additionally, a 2023 federal court order required Voyager to pay over $1.6 billion to the FTC.
The settlement with the athletes marks a small step in resolving the complex legal web surrounding Voyager’s demise. Separate lawsuits filed by the U.S. Commodity Futures Trading Commission and the FTC against former Voyager CEO Stephen Ehrlich for alleged fraudulent statements concerning the company’s services are still ongoing.
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