Mark Cuban Slammed with Lawsuit for Endorsing Bankrupt Voyager Digital
Godfrey Benjamin Aug 12, 2022 07:00
Mark Cuban, the billionaire owner of the basketball team Dallas Mavericks, has been slammed with a class action lawsuit for his role in promoting the now bankrupt crypto platform Voyager Digital.
Days after going tough on metaverse real estate, Mark Cuban, the billionaire owner of the basketball team Dallas Mavericks, has been slammed with a class action lawsuit for his role in promoting the bankrupt crypto platform Voyager Digital.
The class action suit was filed by the Moskowitz Law Firm in the United States District Court in Southern Florida and is demanding that Cuban, alongside Voyager Digital’s CEO, Stephen Erlich, and Dallas Mavericks pay back those who have suffered losses through the platform whom it said its products were paraded as a Ponzi scheme.
The lawsuit alleges that the business model of Voyager Digital was hinged on frequent promotions from Mark Cuban.
“Cuban and Ehrlich, 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 and purchasing Voyager Earn Program Accounts (‘EPAs’), which are unregistered securities,” the lawsuit alleges.
He is known as one of the first Wall Street veterans to embrace digital currencies, and he is particularly known as a lover of Bitcoin (BTC) and Dogecoin (DOGE), a tag he competes with Elon Musk for. He took his advocacy to Voyager Digital, and per the lawsuit;
“Voyager Platform relied on Cuban’s and the Dallas Maverick’s vocal support and Cuban’s monetary investment in order to continue to sustain itself until its implosion and Voyager’s subsequent bankruptcy.”
Voyager Digital declared bankruptcy after halting withdrawals on its platform, a situation highlighting its disrupted business opportunity with the inability of Three Arrows Capital (3AC) to pay as much as $670 million it owed the company.
Considering its current woes, it is unclear how well the company will fare with this new lawsuit. Still, it is very focused on bringing succour to some of its customers, which is now necessary since the firm’s representatives advised against accepting the offer from FTX and Alameda Research.
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