NBA sues investors over ties to bankrupt Voyager exchange

09.02.2024

The National Basketball Association is being sued over its promotion of dormant cryptocurrency exchange Voyager Digital Holdings, which investors claim resulted in more than $4.2 billion in losses.

The NBA was “grossly negligent” in approving the marketing deal between Voyager and the Dallas Mavericks, according to the lawsuit filed Tuesday in Miami District Court. “The NBA’s widespread promotion of Voyager’s unregistered securities makes it liable for any and all subsequent damages.”

The suit also names Voyager’s law firm, McCarter & English, alleging that it used its credibility to assure investors that Voyager’s offerings were “completely honest,” the document says.

The same group sued Mark Cuban, the former owner of Mavericks, in 2022, claiming he misled them about Voyager. Cuban denied the allegations.

Voyager filed for bankruptcy in July 2022 because of its ties to bankrupt cryptocurrency hedge fund Three Arrows Capital.