According to Bloomberg reports, the National Basketball Association (NBA) is facing an expensive case after entering into a partnership with now-defunct cryptocurrency exchange Voyager Digital, which saw its investors lose more than $4.2 billion.
Investors who point to the NBA for being too negligent in advertising are blamed on Voyager and Mark Cuban, the former owner of the Dallas Mavericks.
This case is mirrored in another lawsuit for misleading investors into believing their investments with Voyager were safe when they lost money. Cuban denies all allegations. Hence, the Voyager co-founder has lawsuits over his alleged deceptive practices.
The NBA's cryptocurrency ties go beyond the deals Voyager made with the banned FTX exchange, whose founder has been accused of fraud. The crux of this lawsuit exposes the growing issue of promotions, where NBA team representatives promote cryptocurrency entities and raise urgent issues of risk.
Read also: Mythical Games settles lawsuit with Fenix Games
