Three prominent figures in American sports have collectively agreed to pay $2.42 million to settle allegations of promoting the failed cryptocurrency exchange Voyager Digital. The settlement, which was filed on May 3 as part of a class action, sees retired NFL star Rob “Gronk” Gronkowski paying the largest share of $1.9 million. NBA player Victor Oladipo will pay $500,000, while NASCAR driver Landon Cassill will pay $25,000. All three sports stars have agreed to the settlements without admitting or denying the accusations.
The settlement includes all U.S. individuals who participated in a Voyager Earn Program Account or purchased VGX tokens between October 2019 and the preliminary approval date. Alongside the $2.4 million settlement, the plaintiffs also plan to request approximately $792,000 in attorney fees.
Gronkowski, who launched an NFT collection in 2021, became a Voyager partner, “brand ambassador,” shareholder, and VGX tokenholder in September 2021, according to a press release. Adam Moskowitz, the legal representative for the investors, stated that the settlements were largely the result of the athletes’ desire to assist their fans. He praised Gronkowski’s empathy for his fans and highlighted his continued trust and respect as a spokesperson.
The class action was initially filed against Dallas Mavericks owner Mark Cuban in 2022, with Gronkowski and other Voyager promoters added in 2023. The settlements were reached through mediation, focusing on two key issues: whether the Voyager products were unregistered securities and whether the promoters solicited investors.
The cryptocurrency trading platform filed for bankruptcy in July 2022 due to the impact of market turmoil following the Terra/Luna collapse in May and the default of loans to the Three Arrows Capital (3AC) hedge fund. In April, Voyager Digital made progress in compensating its creditors by securing $484 million through settlements with FTX, Three Arrows Capital, and Directors and Officers (D&O) insurance claims.
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