Voyager Digital investors and Dallas Mavericks fans are lashing out at the NBA team’s owner Mark Cuban for his role in promoting the insolvent lending platform’s unregulated crypto products.
The billionaire entrepreneur is now facing a civil lawsuit.
- According to the court document, the plaintiffs alleged that Cuban and Voyager Digital CEO Stephen Ehrlich targeted young and inexperienced fans to put their savings into Voyager Digital by promoting it on numerous occasions.
- The lawsuits also claimed that Cuban made “misrepresentations” to the plaintiffs with respect to the undisclosed commissions on crypto trades made on Voyager as well as the lender’s Federal Reserve and Federal Deposit Insurance Corporation (FDIC) insured status.
- Interestingly, the Fed had earlier ordered Voyager not to mislead its customers about FDIC protection.
- The plaintiffs continued to attack Cuban and Ehrlich and claimed that the duo “went to great lengths” to use their experience as investors to dupe millions of Americans into investing their life savings into the “Deceptive” Voyager Platform and buying Voyager Earn Program Accounts, which according to the plaintiffs are “unregistered securities.”
- Cuban was also accused of hyping up his own investments in the products to coerce the retail investors to do the same.
- Filed by Moskowitz Law Firm in the United States District Court in Southern Florida, the civil suit demanded a jury hearing for the case.
- For context, Voyager Digital partnered with the Dallas Mavericks to become the NBA team’s crypto brokerage and international partner in October 2021, a deal that was heavily endorsed by Cuban.
- After Voyager Digital filed for chapter 11 bankruptcy in July this year following Three Arrows Capital’s collapse, both Cuban and Dallas Mavericks faced intense backlash.
- As per its bankruptcy filing, there were more than 100,000 creditors, while its assets were estimated between $1-$10 billion.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
- AA News
- Bitcoin
- blockchain
- blockchain compliance
- blockchain conference
- coinbase
- coingenius
- Consensus
- crypto conference
- crypto mining
- Crypto News
- cryptocurrency
- CryptoPotato
- decentralized
- DeFi
- Digital Assets
- ethereum
- machine learning
- Mark Cuban
- non fungible token
- plato
- plato ai
- Plato Data Intelligence
- Platoblockchain
- PlatoData
- platogaming
- Polygon
- proof of stake
- Voyager Digital
- W3
- zephyrnet
More from CryptoPotato
Luna’s BTC Reserves Gone as Exchanges Halt UST Withdrawals Amid Turbulent 24 Hours
Source Node: 1300801
Time Stamp: May 10, 2022
MetaWin Unveils ‘MetaWin Millionaire:’ A Revolutionary $1 Million Cryptocurrency Giveaway
Source Node: 2384835
Time Stamp: Nov 16, 2023
Vietnam Sees High Demand For Crypto Mining Rigs Following Bitcoin’s Recovery
Source Node: 1069895
Time Stamp: Sep 6, 2021
Despite the Crash: Mike Novogratz Still Believes Bitcoin is the Future
Source Node: 939773
Time Stamp: Jun 23, 2021
Former Alameda Engineer Explains How SBF Stole His Savings
Source Node: 2235734
Time Stamp: Aug 26, 2023
ETH’s Supply Change After the Merge and Will It Ever Be Deflationary
Source Node: 1685515
Time Stamp: Sep 24, 2022
US Investment Bank Cowen to Offer Crypto Custody Services
Source Node: 1853100
Time Stamp: May 13, 2021
UAE’s Klickl Secures ADGM Financial Services Permission, Revolutionizing Finance with Integrated Tradefi and Web 3.0
Source Node: 2548094
Time Stamp: Apr 17, 2024
U.S. Treasury Targets Stablecoins in Latest Regulatory Risk Assessment
Source Node: 1082395
Time Stamp: Sep 19, 2021
FINRA Offers Job Opportunities to People Laid Off by Crypto Companies
Source Node: 1397965
Time Stamp: Jun 15, 2022