According to Bloomberg, the National Basketball Association (NBA) is facing a lawsuit for its marketing association with the now-defunct cryptocurrency lending platform, Voyager Digital. Investors of Voyager claim that the platform’s collapse resulted in a loss of $4.2 billion.
The lawsuit, filed on Tuesday in Miami, accuses the NBA of “gross negligence” when it agreed to a marketing agreement between Voyager and Mark Cuban, the former owner of the NBA’s Dallas Mavericks. Prior to this, these investors had already sued Cuban for promoting Voyager, referring to it as an “unregulated and unsustainable fraud” after its closure in 2022.
The suing investors state, “The NBA’s extensive promotion of Voyager as an unregistered security makes it liable for any and all damages caused thereby.” They also named the law firm, McCarter & English, representing Voyager, as a defendant, alleging that the firm provided “fraudulent legal advice and participated” in the conspiracy to promote the cryptocurrency platform.
In related news: “Despite the controversy surrounding Voyager, Cuban remains optimistic about the future of cryptocurrencies after the collapse of FTX.”
