The plaintiffs claim that the NBA showed "extreme negligence" by approving Voyager Digital's advertising agreement with the Dallas Mavericks basketball club, owned by billionaire Marc Cuban. According to investors, the NBA became an intermediary promoting unregistered Voyager Digital securities, so the Association should be responsible for the resulting losses of investors in the amount of more than $4.2 billion.
The lawsuit states that the NBA deliberately assumed the risks of working with such cryptocurrency companies as Voyager, Coinbase and the bankrupt FTX exchange. Now the NBA must pay multibillion-dollar compensation due to empty arenas and loss of television revenue due to the COVID-19 pandemic.
Crypto-lender Voyager Digital suspended the withdrawal of funds in early July 2022, and in the same month, the cryptocurrency hedge fund Three Arrows Capital (TAS) filed for bankruptcy. After the collapse of FTX in late 2022, numerous class action lawsuits were filed against celebrities and sports stars who collaborated with FTX.