| On February 16, 2023, a Florida judge granted early approval to a $2.4 million settlement between cryptocurrency platform Voyager and several high-profile sports stars, including NFL quarterback Rob Gronkowski, NBA player Udonis Haslem, and Olympic gold medalist Lindsey Vonn. The settlement resolves a class-action lawsuit filed against Voyager and these celebrities for promoting the company’s services without disclosing their financial relationship – a practice known as ” Astroturfing .” In this article, we’ll dive deeper into the details of the case and the implications for the crypto industry.
The class-action lawsuit was filed in August 2022, accusing Voyager, Gronkowski, Haslem, Vonn, and other celebrities of misleading the public by failing to disclose their financial ties to Voyager. Under the settlement, Voyager has agreed to pay $1.6 million, while the celebrities will contribute a combined $800,000 to resolve the claims. The funds will be used to reimburse affected investors, with the remainder going towards attorney fees and administrative costs. Judge Kevin Michael Moore of the U.S. District Court for the Southern District of Florida approved the preliminary settlement, praising both parties for their cooperation and swift resolution of the matter. “This is an excellent settlement, especially considering the early stage of the litigation,” Judge Moore stated during the hearing. The approval of the settlement marks a significant milestone in the ongoing legal battle between Voyager and the plaintiffs. In recent years, several cryptocurrency companies have faced lawsuits over similar allegations of undisclosed endorsements and promotions, highlighting the need for increased transparency and regulatory compliance in the industry. Although the settlement is still subject to final approval, the early approval by Judge Moore signifies a positive outcome for both Voyager and the plaintiffs. The swift resolution of the lawsuit will help restore investor confidence in Voyager and the broader crypto market, particularly as regulators continue to scrutinize the industry’s practices. The case also serves as a reminder for celebrities and influencers to be transparent about their financial relationships with cryptocurrency companies. In 2022, the U.S. Securities and Exchange Commission (SEC) issued several warnings about the risks associated with celebrity endorsements of crypto assets, urging influencers and celebrities to disclose their financial ties to avoid misleading investors. In conclusion, the early approval of the $2.4 million settlement between Voyager and several sports stars over the company’s promotional practices marks a significant development in the ongoing legal battle and the broader crypto industry. As regulators increase their scrutiny of the crypto market, the case underscores the importance of transparency and compliance for companies and influencers alike. With the final approval of the settlement looming, Voyager and the plaintiffs can move forward, focusing on rebuilding trust with investors and adhering to regulatory standards. |