American Sports Stars Agree to $2.42 Million Settlement in Voyager Promotion Case

cryptonews.com:

Three American sports personalities, Rob Gronkowski, Victor Oladipo, and Landon Cassill, agreed on May 3 to collectively pay $2.42 million to settle allegations in the Voyager promotion case.

The settlement involving the trio’s promotion of the defunct crypto exchange Voyager Digital provides a detailed look at the financial implications and legal aspects of their involvement.

Retired NFL icon Gronkowski agreed to pay the highest amount, $1.9 million. OKC Thunder Guard Oladipo settled for $500,000, while NASCAR driver Cassill agreed to pay $25,000.

GRONKOWSKI AND OTHERS TO SETTLE CRYPTO INVESTOR SUIT FOR $1.9M

– Former NFL star Rob Gronkowski agrees to pay $1.9 million to settle claims from former customers of Voyager Digital, a cryptocurrency lender.

– The settlement, subject to court approval, involves Gronkowski, NBA… https://t.co/jcP9n0sXnz pic.twitter.com/hBnaiiACwB

— BSCN (@BSCNews) May 7, 2024

In addition to the settlement, the plaintiffs also seek $792,000 in attorney fees.

Unlike the other defendants, Gronkowski was more involved with Voyager. The NFL player was a partner, VGX token holder, shareholder, and ambassador for the exchange.

According to court documents, the settlement was negotiated through mediation aimed to discover whether Voyager’s products were unregistered securities and if the promoters improperly solicited investors.

Voyager Digital filed for bankruptcy in July 2022 due to severe market turmoil triggered by the Terra/Luna collapse in May 2022 and the default of loans to the Three Arrows Capital (3AC) hedge fund. This series of events ultimately led to the exchange’s downfall.

In April 2024, however, Voyager took steps towards compensating creditors by securing $484 million through settlements with