The NBA faces a lawsuit attributable to its promotional associations with the now-defunct cryptocurrency trade Voyager Digital Holdings Inc.
In line with traders, the partnership is liable for monetary damages amounting to $4.2 billion. In line with Bloomberg stories, accusations of extreme negligence have been leveled in opposition to the NBA for its promotional settlement involving Voyager and Mark Cuban, the earlier Dallas Mavericks’ majority proprietor.
The authorized motion follows a previous lawsuit in opposition to Cuban for his endorsement of what’s now deemed a fraudulent and unregulated enterprise. In 2022, traders charged Mark Cuban with deceit over Voyager’s safety assurances, alleging that his representations contributed to their monetary losses. Cuban has dismissed these accusations as utterly unfounded.
Moreover, the Commodity Futures Buying and selling Fee has pursued authorized motion in opposition to Voyager’s co-founder Stephen Ehrlich, accusing him of misleading practices in managing a digital asset buying and selling and custody platform. Ehrlich has countered these allegations, claiming his designation as a “scapegoat” for others’ misconduct.
The lawsuit highlights a broader development of NBA groups participating in promotional actions with cryptocurrency entities, together with the beleaguered FTX trade. FTX’s collapse led to fraud convictions for its founder, Sam Bankman-Fried.