Investors sued the NBA over its relationship with Voyager after suffering $4.2 billion in losses.
The NBA is facing a lawsuit over its promotional partnership with the now-defunct cryptocurrency exchange Voyager Digital Holdings Inc.
According to investors, the partnership resulted in a financial loss of $4.2 billion. According to a Bloomberg report, the NBA has been accused of serious negligence over a promotional agreement involving Voyager and former Dallas Mavericks majority owner Mark Cuban.
The legal action follows previous lawsuits over Cuban’s support of what is now considered a fraudulent and unregulated venture. In 2022, investors charged Mark Cuban with fraud over Voyager’s security guarantees, claiming his statements contributed to their financial losses. The Cuban side dismissed these accusations as completely unfounded.
Additionally, the Commodity Futures Trading Commission took legal action against Voyager co-founder Stephen Ehrlich, accusing him of fraudulent conduct in managing the digital asset trading and custody platform. Ehrlich countered these claims, claiming that he had been designated a “scapegoat” for the misconduct of others.
The lawsuit highlights a broader trend of NBA teams engaging in promotional activities with cryptocurrency companies, including the troubled FTX exchange. FTX’s downfall resulted in its founder, Sam Bankman-Fried, being found guilty of fraud.