Former NFL star Rob Gronkowski has agreed to pay $1.9 million to settle a lawsuit with a group of cryptocurrency investors. The investors had accused Gronkowski of promoting a digital token called “Centra Tech” without disclosing that he was being paid to do so.
The lawsuit, which was filed in federal court in Florida, alleged that Gronkowski and other celebrities were paid to promote Centra Tech’s initial coin offering (ICO) in 2017. The investors claimed that they were misled into investing in the token based on false and misleading statements made by Gronkowski and others.
Gronkowski, who retired from the NFL in 2019, has denied any wrongdoing in connection with the Centra Tech ICO. However, he agreed to settle the lawsuit to avoid a lengthy and costly legal battle.
In a statement, Gronkowski’s attorney said, “While Rob Gronkowski believes the claims against him are meritless, he has decided to settle this matter to avoid further distraction and expense to himself and his family.”
The settlement agreement requires Gronkowski to pay $1.9 million to the investors, as well as to cooperate with them in their ongoing litigation against Centra Tech and its founders. The agreement also prohibits Gronkowski from promoting any cryptocurrency or ICO for the next two years.
This case serves as a cautionary tale for celebrities and influencers who promote cryptocurrencies and other investment opportunities on social media. It highlights the importance of disclosing any financial relationships with companies whose products or services they endorse, in order to avoid potential legal consequences.
As the popularity of cryptocurrencies continues to grow, regulators are increasingly cracking down on fraudulent ICOs and other scams in the industry. Investors should exercise caution and conduct thorough due diligence before investing in any cryptocurrency or blockchain project, and should be wary of celebrity endorsements that may not be entirely transparent.
Overall, the settlement between Rob Gronkowski and the cryptocurrency investors underscores the need for transparency and accountability in the rapidly evolving world of digital assets. It serves as a reminder that even high-profile individuals are not immune from legal scrutiny when it comes to promoting potentially risky investments.