MEXCLawsuit Filed Against Mark Cuban; Here’s Why
Mark Cuban, billionaire entrepreneur and owner of Dallas Mavericks, is the latest in line to face a lawsuit. The class action complaint against the billionaire connects to his promotion of crypto broker Voyager Digital.
Mark Cuban promoted Voyager Digital
Moskowitz Law Firm filed the lawsuit on behalf of fans of Cuban’s basketball team Dallas Mavericks, and other aggrieved Voyager Digital investors at a US District Court in the Southern District of Florida.
The suit alleges that Mark Cuban relentlessly promoted now bankrupt Voyager Digital to fans of Dallas Mavericks. This prompted unsuspecting individuals to invest in the entity, leading to a loss of funds. The action did not spare Stephen Ehrlich, CEO and founder of Voyager; and Cuban’s Dallas Mavericks team.
“Cuban and Ehrlich, as will be explained, went to great lengths to use their experience as investors to dupe millions of Americans into investing—in many cases, their life savings—into the Deceptive Voyager Platform,”
the suit alleges.
Additionally, it adds that Voyager Earn Program Accounts which the firm sold to investors are unregistered securities.
Generally, the class action is looking to hold Cuban and Ehrlich responsible for refunds of the over $5B dollars investors lost. The suit further took into account comments of Cuban promoting Voyager. Furthermore, it accused Cuban and Ehrlich of distorting facts to lure investors who paid fees despite a promise of free services.
The recent contagion did not spare Voyager Digital
Voyager Digital was one of the entities hit by the financial epidemic pumped into the crypto space by the Terra collapse and the Crypto Winter. The broker’s troubles became apparent when it announced a decision to pause withdrawals on its platform on July 1. It cited exposure to the now defunct Three Arrows Capital.
Shortly after that, Voyager Digital filed for Chapter 11 Bankruptcy. According to the bankruptcy proceedings, the firm has over 100,000 creditors. The filing listed assets and liabilities ranging from $1B to $10B.
On August 5, Voyager Digital noted plans to restore customer cash withdrawals on August 11. This would be for customers with US dollars in their accounts. However, the firm would take 5 to 10 business days to fulfill withdrawal requests.
- Solana Foundation Manager Vibhu Challenges Ripple Execs To Public “Facts-Only” XRP Debate
- Teucrium Files for Flare Network ETF as XRP Minting For FXRP Tops $120M
- Waller Signals December Fed Rate Cut Despite Powell’s “No More Cuts” Stance
- BitMine Buys $29 Million in Ethereum as Kalshi Traders Cut $5,000 Price Odds to 34%
- Bitwise XRP ETF Moves Closer to Launch as Firm Submits Final S-1 Filing
- Pi Coin Price Prediction After AI Investment Announcement – Is a Bull Run Ahead?
- How High Can Zcash Price Go In November?
- SOL ETFs Records $44.4M in 4 Days: What’s Next For Solana Price?
- Why Is TAO Price Skyrocketing Today?
- After 1,993% Burn Spike, Is Shiba Inu Price Set for a Major Trend Reversal?
- Pepe Coin Price Forms Multi-Year H&S Pattern as Whale Selling Intensifies
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
