Key Takeaways:
- Rob Gronkowski has agreed to pay $1.9 million to settle allegations linked to the bankruptcy of Voyager Digital, where he served as a brand ambassador and shareholder.
- The settlement involves other celebrities like Victor Oladipo and Landon Cassill, contributing to a $2.4 million total settlement pool pending court approval.
- The legal actions targeting Gronkowski were part of a broader litigation that included other high-profile promoters like Mark Cuban, reflecting increasing scrutiny over celebrity endorsements in cryptocurrency.
In a significant development in the cryptocurrency legal landscape, former NFL tight end Rob Gronkowski has agreed to pay $1.9 million to settle allegations made by former customers of Voyager Digital, a cryptocurrency lending firm that went bankrupt.
This settlement is pending approval from the court handling the civil lawsuit.
NFL legend Rob Gronkowski's crypto shilling will likely cost him $1.9 million in lawsuit https://t.co/AH95jAmReq
— The Block (@TheBlock__) May 7, 2024
The funds will be contributed into a larger $2.4 million settlement pool that also involves contributions from NBA star Victor Oladipo and NASCAR driver Landon Cassill.
This announcement came through a court document dated May 3.
Gronkowski, who had roles as a brand ambassador and shareholder of Voyager, as well as an investor in Voyager’s VGX token starting September 2021, is part of a broader legal action.
GRONKOWSKI AND OTHERS TO SETTLE CRYPTO INVESTOR SUIT FOR $1.9M
— BSCN (@BSCNews) May 7, 2024
– Former NFL star Rob Gronkowski agrees to pay $1.9 million to settle claims from former customers of Voyager Digital, a cryptocurrency lender.
– The settlement, subject to court approval, involves Gronkowski, NBA… https://t.co/jcP9n0sXnz pic.twitter.com/hBnaiiACwB
This group litigation initially targeted Dallas Mavericks owner Mark Cuban and other promoters of Voyager.
Last year, the litigation was expanded to include Gronkowski and additional promoters.
In February, a preliminary settlement agreement was reached with Gronkowski, and recently, the investors prepared to move forward with the first phase of proposed class settlements with him, Oladipo, and Cassill.
Rob Gronkowski is paying $1.9 million to settle claims over how he promoted the crypto brokerage company Voyager, per @eriqgardner.https://t.co/VUaX3BaHpX
— John Ourand (@Ourand_Puck) May 6, 2024
As per the legal documents, while Gronkowski is set to pay $1.9 million, Oladipo has agreed to a $500,000 settlement, and Cassill will contribute $25,000. Upon court approval, the claims against these three individuals will be dismissed.
This settlement coincided closely with a comedic event featuring Tom Brady, Gronkowski’s former teammate, where the subject of cryptocurrency endorsements became a focal point.
At this event, comedians made light of Brady’s financial losses in crypto, with references to his promotional activities for a now-defunct exchange, without directly naming it.
Notably, Kevin Hart made a jest about the venue choice to avoid crypto reminders, and Nikki Glaser humorously critiqued Brady’s decision-making in crypto investments, highlighting even Gronkowski’s skepticism about the authenticity of digital currencies
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