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.
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.
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.
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