Cryptocurrency sponsorships have created unprecedented opportunities and legal challenges for athletes, teams, and leagues.

As digital assets continue to gain mainstream adoption, sports, and entertainment figures have become key partners in promoting cryptocurrency and NFT projects. However, this evolving landscape has also led to increased regulatory scrutiny, contract disputes, and litigation risks for those involved in crypto-related sponsorships and endorsements. At Hogan Lovells, our team is at the forefront of advising clients in the sports and entertainment industries on the legal risks associated with cryptocurrency sponsorships. We help athletes, teams, leagues, and sponsors navigate complex regulatory frameworks, ensuring compliance with securities laws, consumer protection regulations, and contractual obligations.

Unlike traditional sponsorships, cryptocurrency endorsements often involve financial products subject to stringent regulations. The classification of crypto assets as securities in some jurisdictions has resulted in high-profile enforcement actions and lawsuits against endorsers, including athletes and celebrities. Additionally, the volatility of cryptocurrency markets increases the likelihood of consumer litigation, with fans and investors claiming losses due to misleading promotions or inadequate disclosures. Our team closely monitors the latest developments in regulatory enforcement and litigation trends to help clients mitigate legal exposure. We provide strategic advice on crafting sponsorship agreements that clearly define the rights and obligations of both parties, reducing the risk of future disputes.

Several recent cases have underscored the legal risks of endorsing cryptocurrency projects, particularly when sponsors fail to disclose material risks or regulatory compliance issues. Our experienced litigators have successfully defended clients in cases involving influencer liability, securities fraud claims, and deceptive advertising allegations. We leverage our deep understanding of financial regulations and digital assets to build strong defenses for our clients, whether through pre-litigation risk assessments, settlement negotiations, or courtroom advocacy.