Mark Cuban becomes the center of a class action lawsuit because Cuban misrepresented Voyager’s cryptocurrency goods and services and used his years of experience to entice naïve clients into spending their whole life assets.
Mark Cuban Becomes Center Of Class Action Lawsuit
A class-action lawsuit has been filed against Mark Cuban, a wealthy businessman who has been quite active in the cryptocurrency environment in recent months, for his support of the defunct cryptocurrency brokerage Voyager Digital.
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 lawsuit also 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.”
Voyager was one of many cryptocurrency lenders to Three Arrows Capital (3AC) that failed after subsequently declaring bankruptcy. 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.
Mark Cuban has recently been in the crypto news when he said that Cardano hasn’t had much of an impact.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]