Billionaire Mark Cuban Sued For Promoting Crypto Ponzi Scheme

Mark Cuban, the owner of Dallas Mavericks and Shark Tank star, has ended in legal hot water, as a class-action lawsuit was filed against him for the promotion of the crypto products of Voyager Digital.

According to the plaintiffs, Voyager Digital had been a ‘massive Ponzi scheme’ and through his promotion, the owner of the NBA team had duped millions of people.

The lawsuit

In the southern district of Florida, a class-action lawsuit was filed against Mark Cuban in a US District Court.

The defendants included the Shark Tank Star, along with Steven Ehrlich, the CEO of Voyager Digital, and Dallas Basketball Ltd. (DBA Dallas Mavericks).

The 12 lead plaintiffs also reference the case that had been filed last year in December ‘Mark Cassidy v. Voyager Digital Ltd.’.

According to the plaintiffs, Ehrlich and Cuban had gone to great lengths to dupe millions of people by using their experience as investors.

It was alleged that in a number of cases, they had convinced Americans into investing their life savings into the Voyager platform which was a sham.

The lawsuit also alleged that they had convinced people to buy Voyager Earn Program Accounts (EPAs) that are considered unregistered securities.

Cuban’s role

It was added that because of Cuban and Ehrlich’s actions, there were around 3.5 million Americans who had suffered from losses worth $5 billion in terms of cryptocurrencies.

Therefore, the plaintiffs said that the lawsuit was aimed at holding Ehrlich and Cuban, along with the latter’s team, accountable for their actions.

As per the lawsuit, Cuban had spoken at a press conference for Dallas Mavericks and had shown his support and also talked about his partnership with Voyager.

The plaintiffs alleged that the Shark Tank star had proudly claimed that he would help in increasing the presence and scope of the Voyager platform significantly for people with limited experience and funds.

It was asserted that Cuban and Ehrlich were liable to the plaintiffs because of their omissions and misrepresentations that had been broadcasted throughout the country.

More allegations

It was also detailed in the lawsuit that Cuban had gone as far as claiming that the Voyager platform was as risk-free as possible in the crypto market.

The plaintiffs had alleged that the Dallas Mavericks owner had urged retail investors into putting in their money by hyping the fact that he was also investing his own funds in the scam Voyager platform.

It was asserted that the Voyager platform was a deceptive one because it was based upon false representations and pretenses.

The allegations said that the platform had been designed to exploit those investors who make investments through mobile apps in an unsavory, unfair, and deceptive manner.

Last month, Voyager Digital filed for bankruptcy, as it cited prolonged contagion and volatility in the crypto space in the last couple of months for its bankruptcy.

In addition, Three Arrows Capital (3AC) had also defaulted on a loan it had taken from Voyager, as the crypto fund had also gone bankrupt.