Billionaire Mark Cuban Slapped With Lawsuit For Promoting Voyager Products
12 Aug, 2022•1 min read•Regulation
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.