Investors Take Legal Action Against NBA for Alleged Involvement with Voyager in Wake of $4.2 Billion Loss

The NBA is facing legal action over its promotional links with the now-defunct cryptocurrency exchange Voyager Digital Holdings Inc. Investors allege that this collaboration resulted in financial losses totaling $4.2 billion. According to Bloomberg reports, the NBA is accused of severe negligence in its promotional deal with Voyager, which also involved Mark Cuban, the former majority owner of the Dallas Mavericks.

This lawsuit follows a previous legal challenge against Cuban for endorsing what is now considered a fraudulent and unregulated venture. In 2022, investors accused Cuban of deceiving them regarding Voyager’s security assurances, leading to financial losses. However, Cuban has vehemently denied these allegations.

Furthermore, the Commodity Futures Trading Commission has initiated legal proceedings against Voyager’s co-founder, Stephen Ehrlich, accusing him of deceptive practices in managing a digital asset trading and custody platform. Ehrlich has refuted these allegations, asserting that he is being unfairly targeted as a “scapegoat” for others’ wrongdoing.

This lawsuit sheds light on a broader trend of NBA teams engaging in promotional activities with cryptocurrency entities, including the troubled FTX exchange. FTX’s collapse resulted in fraud convictions for its founder, Sam Bankman-Fried.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.