NBA Facing Legal Action over Marketing Deals with Crypto Lender Voyager Digital
The National Basketball Association (NBA) is currently facing legal action over its marketing deals with the bankrupt crypto lender Voyager Digital. A 100-page lawsuit filed in a Miami district court claims that the NBA was „grossly negligent“ in approving Voyager’s promotional deal with the Dallas Mavericks, leading to significant losses.
The Voyager and Dallas Mavericks Partnership
In 2021, Voyager partnered with the Dallas Mavericks to become the team’s official crypto brokerage and international partner. However, a group of the platform’s users, seeking legal action, alleges that this deal resulted in losses exceeding $4.2 billion.
Lawsuit Against the NBA
The group behind the lawsuit seeks to hold the NBA liable for the losses, arguing that the NBA’s widespread promotion of Voyager’s unregistered securities makes it accountable for any resulting damages. They claim that the NBA deliberately embraced the risks of working with crypto exchanges such as Voyager, Coinbase, and FTX, accepting billions in promotional compensation as it tried to compensate for the loss of income due to the Covid-19 pandemic.
Legal Action Against Mark Cuban and Expansion to the NBA
The same group had previously taken legal action against the owner of the Dallas Mavericks, Mark Cuban, in 2022, alleging that he misrepresented the safety of Voyager while promoting it. Despite Mark Cuban’s denial of this claim, the group’s lawyers have expanded their litigation to include the NBA.
In conclusion, the legal action against the NBA highlights the potential implications of marketing deals with crypto lenders and the responsibility of major sports organizations to thoroughly evaluate such partnerships. The outcome of this lawsuit could have significant ramifications for the NBA and its future endeavors in the crypto space.
