A class-action lawsuit has been filed against Mark Cuban, it alleged that the billionaire misrepresented the crypto offerings and services by Voyager digital and used his influence to lure inexperienced customers into investing their money.
Mark Cuban was sued by The Moskowitz Law Firm in civil court in Southern Florida for advertising Voyager’s unlicensed cryptocurrency products. A jury trial was demanded in the action.
Cuban was accused of repeatedly misrepresenting the company, including making questionable claims that it offered “commission-free” trading services and was less expensive than rivals.
The lawsuit claims that Cuban and the CEO of Voyager Digital, Stephen Ehrlich, used their years of experience to entice uninformed clients into investing their life savings in what they referred to as a Ponzi Scheme.
A section of the lawsuit was as follows:
“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.”
In spite of knowing this, the lawsuit claimed that Cuban kept promoting Voyager’s products and encouraging retail investors to buy in them. Cuban declared the Voyager platform to be “as near to risk-free as you’re going to get in the crypto” on the record. The complaint stated:
“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.”
One of the several cryptocurrency lenders to Three Arrows Capital (3AC) that failed after a subsequent insolvency was Voyager. On July 1, the crypto lending company halted trading and withdrawals, and on July 5, it eventually filed for chapter 11 bankruptcy. Nearly 5 billion dollars’ worth of bitcoin assets owned by over 3.5 million American users are currently locked.
The judge presiding over Voyager’s bankruptcy proceedings in New York gave the company permission to refund $270 million in client funds stored at the Metropolitan Commercial Bank (MCB).
A day later, the loan company said that beginning on August 11, customers having U.S. dollars in their accounts could withdraw up to $100,000 in a 24-hour period, with the money arriving in 5–10 working days.
