9 months ago
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The NBA faces a lawsuit due to its promotional associations with the now-defunct cryptocurrency exchange Voyager Digital Holdings Inc.
According to investors, the partnership is responsible for financial damages amounting to $4.2 billion. According to Bloomberg reports, accusations of severe negligence have been leveled against the NBA for its promotional agreement involving Voyager and Mark Cuban, the previous Dallas Mavericks’ majority owner.
The legal action follows a prior lawsuit against Cuban for his endorsement of what is now deemed a fraudulent and unregulated venture. In 2022, investors charged Mark Cuban with deceit over Voyager’s security assurances, alleging that his representations contributed to their financial losses. Cuban has dismissed these accusations as completely unfounded.
Additionally, the Commodity Futures Trading Commission has pursued legal action against Voyager’s co-founder Stephen Ehrlich, accusing him of deceptive practices in managing a digital asset trading and custody platform. Ehrlich has countered these allegations, claiming his designation as a “scapegoat” for others’ misconduct.
The lawsuit highlights a broader trend of NBA teams engaging in promotional activities with cryptocurrency entities, including the beleaguered FTX exchange. FTX’s collapse led to fraud convictions for its founder, Sam Bankman-Fried.
