• Former NFL Star Rob Gronkowski must pay $1.9 million to settle a crypto investor lawsuit against Voyager Digital ambassadors
• Former NBA All-Star Victor Oladipo and racecar driver Landon Cassill also struck deals with Voyager digital customers
• The settlement totaling $24 million is subject to court approval in the lawsuit overseen by the court
Former NFL star Rob Gronkowski has agreed to pay $1.9 million to settle a class action lawsuit brought by crypto investors against celebrity ambassadors for the now-bankrupt cryptocurrency lending company Voyager Digital.
Background on Voyager Digital
Voyager Digital was a cryptocurrency lending company that filed for bankruptcy in 2022. The company had hired several celebrity ambassadors and shareholders, including Rob Gronkowski, to promote its VGX token and platform.
Lawsuit Against Celebrity Ambassadors
After Voyager’s bankruptcy, a group of investors sued the company’s celebrity promoters, including Gronkowski, former NBA player Victor Oladipo, and racecar driver Landon Cassill. The lawsuit alleged the celebrities misled investors about the risks associated with Voyager Digital.
Settlement Details
Gronkowski reached a preliminary settlement with the plaintiffs in February 2023. The total settlement amount of $24 million will go to compensating Voyager investors, with Gronkowski contributing $1.9 million. Oladipo and Cassill also agreed to smaller settlement amounts.
Case Status and Next Steps
The settlement is pending court approval. If approved, the lawsuit against Gronkowski will be dismissed. The plaintiffs will continue their case against Dallas Mavericks owner Mark Cuban, the remaining defendant. The trial is scheduled for November 2024.
Conclusion
The crypto lawsuit settlement demonstrates the legal risks celebrity endorsers face when promoting digital asset companies. Gronkowski’s $1.9 million payment highlights how promoters can be held financially liable for failed crypto ventures they touted.
