Billionaire entrepreneur Mark Cuban is facing a class action lawsuit for his role in promoting Voyager Digital’s cryptocurrency products. The suit alleges that Cuban misrepresented the crypto offering and services by Voyager and used his experience to lure customers into investing in the brokerage firm.
The Moskowitz Law Firm has filed a civil lawsuit in the U.S. District Court in Southern Florida against the billionaire for promoting the firm’s unregulated crypto products. The lawsuit is also filed against Voyager Digital CEO Steven Ehrlich. There are 12 lead plaintiffs in the case “Mark Cassidy v. Voyager Digital Ltd., et al.” filed in December 2021, and they claim that Voyager was “a massive Ponzi scheme” and Cuban “dupped millions of American into investing.” The plaintiffs also allege that:
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.
The lawsuit adds:
As a result, over 3.5 million Americans have now all but lost over 5 billion dollars in cryptocurrency assets. This action seeks to hold Ehrlich, Cuban, and his Dallas Mavericks responsible for paying them back.
Cuban allegedly went on record calling the Voyager platform “as close to risk-free as you’re gonna get in crypto.” The lawsuit further states that:
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 halted trading activity and withdrawals early in July and then filed for Chapter 11 bankruptcy later that month. The crypto lending firm was one of many lenders to Three Arrows Capital. As it stands, over 3.5 million American customers have almost 5 billion dollars in crypto assets on the platform.
