Three prominent American sports figures have collectively agreed to pay $2.42 million to settle allegations concerning their involvement in promoting the failed cryptocurrency exchange Voyager Digital. Retired NFL star Rob "Gronk" Gronkowski will bear the brunt of the settlement, contributing $1.9 million under a class-action settlement filed on May 3. National Basketball Association player Victor Oladipo will pay $500,000, while NASCAR driver Landon Cassil will pay $25,000. Despite agreeing to the settlement, all three athletes neither admitted nor denied any of the allegations brought against them.
The settlement proposal encompasses all U.S. individuals who registered for a Voyager Earn program account or purchased VGX tokens between October 2019 and the initial approval date. Alongside the approved $2.4 million settlement amount, the plaintiffs intend to pursue approximately $792,000 in attorney fees. Gronkowski, who initiated a non-fungible token series in 2021 and later became a Voyager partner, "brand ambassador," shareholder, and VGX token holder in September 2021, played a significant role in the promotion of Voyager Digital.
Adam Moskowitz, legal counsel for the investors, attributed the settlement largely to the athletes' genuine concern for their fans. Moskowitz highlighted Gronkowski's compassion for his fans, noting that despite experiencing losses himself on Voyager, he remains a trusted and respected spokesperson. The settlement emerged from a class-action lawsuit initially filed against Mark Cuban, owner of the NBA's Dallas Mavericks, in 2022, which subsequently involved Gronkowski and other Voyager promoters in 2023.
Mediation facilitated negotiations leading to the settlement, which aimed to address two primary concerns: the classification of Voyager products as unregistered securities and allegations of promoters soliciting investors. Voyager Digital's tumultuous journey included a bankruptcy filing in July 2022 amid market turmoil triggered by the collapse of the Terra ecosystem in May and a default on a loan from the Three Arrows Capital hedge fund. In April, Voyager Digital made strides in compensating creditors by reaching a $484 million settlement with FTX, Three Arrows Capital, and directors and officers insurance claims.
