♾ American Sports Stars Agree to $2.42 Million Settlement in Voyager Promotion Case
💰 Three American sports personalities, Rob Gronkowski, Victor Oladipo, and Landon Cassill, have reached a significant agreement. On May 3, they collectively decided to pay a hefty sum of $2.42 million to settle allegations related to the now-defunct crypto exchange Voyager Digital.
📉 The settlement sheds light on the financial and legal ramifications of their involvement in the Voyager promotion case, offering a glimpse into the intricacies of celebrity endorsements and digital assets.
💼 While Oladipo settled for $500,000 and Cassill agreed to pay $25,000, retired NFL star Gronkowski took the lion's share, with a whopping amount of $1.9 million.
👌 In addition to this substantial settlement, the plaintiffs are also seeking a hefty sum of $792,000 as payment for attorney fees.
🔔 Unlike his co-defendants, Gronkowski had deeper ties with Voyager, serving as a partner, VGX token holder, shareholder, and ambassador for the exchange.
🔍 The negotiations leading to this settlement were conducted through mediation, aiming to explore whether Voyager's offerings crossed the line into unregistered securities territory and if the promotions breached any rules regarding investor solicitation.
💔 Voyager Digital's bankruptcy filing in July 2022 was triggered by market turbulence caused by the Terra/Luna collapse and loan defaults linked to Three Arrows Capital (3AC) hedge fund.
💸 However, there might be some light at the end of this tumultuous tunnel. In April 2024, Voyager managed to secure a substantial sum of $484 million through settlements with FTX, 3AC, and Directors and Officers insurance claims. This will cover around 25% of the total claims made by Voyager's creditors, offering some hope for compensation.
🤝 Alongside the FTX agreement, Voyager is also embroiled in ongoing litigation with 3AC, which could potentially result in a claim worth $675 million.
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