Shark Tank star and NBA Dallas Mavericks owner Mark Cuban is facing a class action lawsuit for promoting Voyager Digital’s crypto products. The plaintiffs allege Voyager was “a massive Ponzi scheme” and the Cubans “duped millions of Americans into investing.”
Mark Cuban sued by Voyager Investors
A class action lawsuit has been filed in the U.S. District Court for the Southern District of Florida against Shark Tank star Mark Cuban, Dallas Basketball Ltd. (DBA Dallas Mavericks), and Voyager Digital CEO Steven Ehrlich.
There are 12 main plaintiffs. Referring to the case of “Mark Cassidy v. Voyager Digital Ltd., et al.,” filed last December, they alleged that Cuban and Ehrlich “went to great lengths to use their experience as investors to deceive 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 describes, adding:
As a result, over 3.5 million Americans have now nearly lost over $5 billion in cryptocurrency assets. This action seeks to hold Ehrlich, Cuban and his Dallas Mavericks responsible for paying them back.
The lawsuit notes that Cuban spoke at a Dallas Mavericks press conference, “where he strongly supported and discussed the partnership between his company and the Voyager defendants.” The plaintiffs emphasized that the Shark Tank star “proudly described how he would personally help significantly increase the scope and presence of The Deceptive Voyager platform for those with limited funds and experience.”
The Ehrlichs’ and Cuban’s misrepresentations and omissions made and broadcast around the country through the Internet make them liable to the plaintiffs and class members for soliciting their purchase of the unregistered EPAs.
The lawsuit also describes that the Cuban “was on the record calling the deceptive Voyager platform ‘as close to risk-free as you’re going to get in the crypto universe.’ own money to the Deceptive Voyager platform to further encourage retail investors to follow in his footsteps.”
The plaintiffs allege that “The deceptive Voyager platform is based on false assumptions, false representations, and is specifically designed to take advantage of investors who use mobile apps to make their investments in an unfair, distasteful and deceptive manner.” They further alleged:
Put another way, the deceptive Voyager platform was a massive Ponzi scheme, relying on Cuban and the Dallas Mavericks’ vocal support and Cuban’s monetary investment to continue to sustain itself until its implosion and Voyager’s subsequent bankruptcy.
Voyager Digital filed for bankruptcy last month citing “prolonged volatility and contagion in the crypto markets in recent months, and default by Three Arrows Capital (‘3AC’) on a loan from the company’s subsidiary.” The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board recently ordered Voyager to cease and desist from making false and misleading statements regarding the company’s FDIC deposit insurance status.
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