Mark Cuban, a well-known billionaire who is a big supporter of crypto, is apparently being sued for promoting Voyager Digital’s failing cryptocurrency lending platform. The class action was filed by investors and fans of the Dallas Mavericks.
Mark Cuban sued over Voyager Digital by investors and Mavericks fans
Mark Cuban, star of Shark Tank and owner of the NBA team Dallas Mavericks, is apparently being sued by Voyager Digital investors and fans of his team.
JUST IN: Mark Cuban has been sued for allegedly promoting bankrupt #crypto lending platform Voyager Digital.
— Watcher.Guru (@WatcherGuru) August 11, 2022
“JUST IN: Mark Cuban has been sued for allegedly promoting bankrupt crypto lending platform Voyager Digital”.
Essentially, the class action lawsuit alleges that Cuban and the CEO of Voyager Digital, Stephen Ehrlich, acted as influencers of the platform that is allegedly turning out to be a Ponzi scheme, duping young and inexperienced fans into investing their savings.
Not only that, among the allegations, Cuban and Ehrlich allegedly claimed repeatedly that Voyager did not charge high fees, but rather was cheaper than its competitors. Which, according to the investors, was simply not true but instead, in addition to paying high and unreasonable fees, they believe they were subjected to hidden fees.
The class action lawsuit was filed by the Moskowitz law firm in the US District Court of South Florida.
Mark Cuban and the Voyager Digital scandal: what happened?
It was since the beginning of this July that Voyager Digital filed for bankruptcy, suspending all deposits, trading, and withdrawals on its platform, totaling between $1 billion and $10 billion.
In the petition, it appears that the number of creditors affected by the bankruptcy was more than 100,000.
In recent days, although somewhat unclear, it appears that the platform has obtained court approval to restore users’ access to cash held at Metropolitan Commercial Bank. The sum arranged for release is $270 million in cash deposits that will be delivered to users in 5 to 10 business days.
Meanwhile, the platform has also announced that it is pursuing a potential sale of the company.
The same fate is most likely befalling Celsius Network, which sees Ripple interested in acquiring some of the assets of the financially troubled company.
In short, the situation is in motion but it is still not clear-cut. In the meanwhile, the class action also involves Cuban, who allegedly participated in this platform by promoting it as follows:
“I gotta add, I am a [Voyager] customer and I’ve been a customer for several months now. I like to use it, it’s easy, it’s cheap, it’s fast, and the pricing is actually really good, so we find it as a perfect fit for our Mavs fans and reaching Mavs fans of all ages”.
The SEC’s nightmarish rules on crypto
Recently, Cuban also reportedly made comments of his own regarding the likely new rules that the US Security and Exchange Commission (SEC) will impose, calling them “nightmarish”.
Specifically, Cuban claims that the SEC will present rules for token registration that will be “the nightmare that awaits the cryptocurrency industry”.