Voyager Digital Investors Sues NBA, Law Firm, Here’s Why

A recent lawsuit has sent shockwaves through the investment community, as investors of Voyager Digital have filed legal action against two unlikely defendants: the National Basketball Association (NBA) and McCarter & English, New Jersey’s oldest law firm. As per the post, the lawsuit alleges substantial misconduct on the part of both entities, accusing them of promoting Voyager Digital to unsuspecting investors.

NBA and McCarter & English Faces Lawsuit

Voyager Digital, a cryptocurrency brokerage platform, garnered significant attention amid the booming interest in digital assets. However, the lawsuit claims that the NBA and McCarter & English played a role in misleading investors about the company’s prospects.

According to the complaint, both entities engaged in actions that artificially inflated Voyager Digital’s value, leading investors to make ill-informed decisions. Meanwhile, the involvement of the NBA in the lawsuit adds a surprising twist to the story. Traditionally known for its basketball prowess, the NBA’s alleged association with promoting an investment platform raises eyebrows.

The lawsuit contends that the NBA endorsed the bankrupt cryptocurrency firm through various promotional activities, contributing to a false perception of the company’s credibility among potential investors. Similarly, the involvement of McCarter & English adds weight to the allegations. As legal advisors, the firm is expected to uphold ethical standards and provide accurate information to clients.

NBA and McCarter & English Plays Role in Misleading Investors

However, the lawsuit accuses the reputable law firm of facilitating deceptive practices related to Voyager Digital, breaching their fiduciary duty to investors. Also, the plaintiffs claim that both parties contributed to their investment losses of $4.2 billion.

At the heart of the lawsuit lies the issue of investor protection and transparency. Investors rely on accurate information and trustworthy endorsements in an increasingly complex financial landscape to make informed decisions. The allegations against the NBA and McCarter & English highlight the potential consequences of misleading promotions and the importance of regulatory oversight in safeguarding investors’ interests.

Voyager Digital’s Troubled Journey

Earlier in July 2022, the crypto lender filed for Chapter 11 bankruptcy protection in the Southern District of New York. At the time, it said the move would allow users access to their funds again. 

Voyager’s woes are a result of the prolonged bearish fall of the crypto market, coupled with the inability of Three Arrows Capital (3AC) to pay back its loan.

Recall that cryptocurrency exchange FTX proposed a buy-out deal to give early liquidity to Voyager’s bankruptcy investors. However, the bankrupt crypto lender said the deal would harm its customers as there was nothing to gain from the agreement.