The National Basketball Association (NBA) and former Dallas Mavericks owner Mark Cuban are facing a lawsuit over their promotional links with the now-defunct crypto exchange Voyager Digital Holdings Inc.
Allegations of Negligence and Fraud
The lawsuit, filed in Miami, accuses the NBA and Cuban of “gross negligence” in their marketing partnership with Voyager. It also alleges that Voyager’s legal counsel, McCarter & English, issued “fraudulent legal opinions” that endorsed the crypto exchange’s operations.
Unregistered Securities and Financial Wreckage
The lawsuit alleges that the NBA actively promoted Voyager’s unregistered securities, implicating it in the resulting financial wreckage. It seeks to leverage proceeds from Cuban’s December sale of the Mavericks to satisfy the claims laid out by investors.
Domino Effect from FTX Debacle
The lawsuit is part of a broader legal fallout from the FTX debacle in 2022, which has implicated celebrities and athletes who endorsed crypto investments. Cuban’s 2021 partnership deal with Voyager, which saw the Mavericks officially adopt Voyager’s token and prominently feature the exchange’s advertising, has come under intense scrutiny.
McCarter & English’s Defense
McCarter & English has declared its intention to “vigorously defend” against the claims, maintaining that their advice was both “clear and competent.”
Crypto Market Rebound
At the time of writing, the crypto market capitalization climbed to $1.661 trillion, exceeding the crucial 0.382 Fibonacci level, which has acted as a key resistance in recent weeks.