The National Basketball Association (NBA) is facing significant accusations from platform users. Users claim that deals made by the NBA have led to losses exceeding $4.2 billion. It appears that the NBA will face a class-action lawsuit due to marketing agreements made with the now-collapsed Voyager Digital in the past period.
NBA and Potential Lawsuit
In a 100-page lawsuit filed on February 6, 2024, at the Miami district court, the NBA is accused of approving a promotional deal between Voyager and the Dallas Mavericks, with claims of “gross negligence” in this approval.
The lawsuit provides detailed information on the marketing activities of the two companies, asserting that the NBA should have acted as a monitor and regulator of these agreements.
According to the filed petition, “the case simply aims to hold the NBA responsible,” and it includes the following statement:
The NBA’s widespread promotion of Voyager’s unregistered securities makes it liable for any resulting damages.
The parties to the lawsuit also argue that the NBA intentionally decided to embrace the risks of working with cryptocurrency exchanges like Voyager, Coinbase, and FTX, noting that there were no spectator revenues from games played in empty arenas due to the COVID-19 pandemic.
At the same time, it is claimed that the NBA accepted “billions of dollars in promotional damages” due to facing situations where billions of dollars in television revenue were lost.
This group, involved in the lawsuit, had also filed a case against Mark Cuban, the former owner of the Dallas Mavericks, in 2022. They alleged that Cuban promoted Voyager and made false statements about its security. Cuban denied these accusations.
What Happened in the Past?
In July 2022, Voyager halted withdrawal transactions and filed for bankruptcy due to events surrounding the troubled hedge fund Three Arrows Capital (3AC), which shook the market.
After the collapse of the FTX exchange in the final months of 2022, numerous lawsuits were filed against celebrities, sports stars, and sports organizations that had partnerships with the exchange.
The Mercedes F1 Team, Major League Baseball, football star Tom Brady, NBA star Steph Curry, basketball commentator Shaquille O’Neal, comedian Larry David, and many other celebrities found themselves targeted by lawsuits due to their partnerships with FTX.