Three American sports stars have thrown in the towel in the Voyager Digital legal saga, collectively agreeing to a $2.42 million settlement. This move offers a glimpse into the financial consequences and legal complexities surrounding the promotion of the now-bankrupt crypto exchange.

Gronk Takes the Biggest Hit:

Retired NFL star Rob Gronkowski, who was heavily involved with Voyager as a partner, shareholder, and ambassador, will pay the most at $1.9 million. Oklahoma City Thunder guard Victor Oladipo coughs up $500,000, while NASCAR driver Landon Cassill settles for $25,000.

Lawyers Seek Hefty Payday:

Adding insult to injury for Voyager investors, the plaintiffs are also seeking a hefty $792,000 to cover attorney fees.

The Allegations:

The lawsuit centered around whether Voyager's products were unregistered securities and if the celebrity endorsements misled investors into making risky choices.

Voyager's Demise:

The crypto exchange filed for bankruptcy in 2022, a victim of the market turmoil triggered by the Terra/Luna collapse and bad loans to the Three Arrows Capital hedge fund.

A Glimmer of Hope for Creditors:

However, there's some good news for Voyager's creditors. In April 2024, the company secured $484 million through settlements with FTX, Three Arrows Capital, and insurance claims. This translates to roughly 25% of total creditor claims and is expected to be distributed soon.

Mark Cuban Still on the Hook:

While the athletes have settled, the main attraction, billionaire Mark Cuban, has yet to do so. A class-action lawsuit accusing him of promoting unregistered securities through his association with the Dallas Mavericks is scheduled for trial in November 2024. The NBA itself is also facing legal action for its partnership with Voyager.

The Takeaway:

This settlement marks a small victory for Voyager's creditors, but the legal battle with Mark Cuban and the NBA promises to be a heavyweight fight with significant implications for the future of celebrity endorsements in the crypto space.