Disgruntled Dallas Maverick fans and Voyager Digital investors sue Mark Cuban.
The Moskowitz Law Firm has filed a class action lawsuit with US District Court in Southern Florida, naming Billionaire Mark Cuban for his role in promoting the bankrupt Voyager Digital to Dallas Maverick fans.
The complaint alleges that Cuban and Voyager Digital CEO Stephen Ehrlich leveraged their years of investing experience to target inexperienced young people to invest their life savings into what they describe as a Ponzi Scheme. In addition, per the filing, Cuban and Voyager Digital allegedly misrepresented the platform multiple times as lacking fees and being cheaper than the competition to gain undue market advantage.
“The Voyager Defendants offer what they misleadingly claim to be ‘100% Commission-Free’ cryptocurrency trading services in order to unfairly obtain an edge over their competition, such as Coinbase, Gemini, Kraken, or Binance, who openly disclose the commissions and fees they charge on cryptocurrency trades,” the complaint reads.
However, according to the filing, Voyager prices were set such that investors paid unreasonably high hidden fees without their knowledge.
In July, The Crypto Basic reported that Cuban had attracted some Dallas Maverick fans’ ire following the collapse of the crypto lender. Notably, the basketball franchise owned by Cuban had entered into a 5-year deal with Voyager Digital in October last year, promoting the platform to fans as a cheap and easy way to get involved in the emerging crypto market.
However, in July, the crypto firm ceased withdrawal services on its platforming, revealing insolvency concerns, consequently filing for Chapter 11 bankruptcy in New York days later.
The latest message from the firm less than a week ago reveals that the company will resume cash withdrawals today after a Judge approved the release of $270 million in cash deposits. Customers with cash deposits would be allowed to withdraw up to $100k within 24 hours.
Additionally, the company reveals that it is currently undergoing a restructuring process and pursuing a potential sale of the firm. Notably, it would start taking bids from August 26. However, it remains unclear how customers with crypto holdings will receive remuneration.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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