Mark Cuban Sued for Promoting Bankrupt Voyager
- Voyager was one of the crypto lenders to the insolvent Three Arrows Capital.
- The crypto lender filed for bankruptcy early last month after pausing trading activities.
Billionaire businessman Mark Cuban is reportedly facing a class-action suit for his alleged involvement with the bankrupt crypto firm, Voyager. Mark has kept an active profile in the crypto industry over the past few months and is known to be a huge promoter of Voyager.
The 64-year-old entrepreneur was sued by The Moskowitz Law Firm for advocating Voyager’s unlicensed cryptocurrency products. Mark was accused of repeatedly misrepresenting the company, including making questionable claims that it offered “commission-free” trading services and was less expensive than others lenders.
The lawsuit claims that Mark and the CEO of Voyager Digital, Stephen Ehrlich, used their years of experience to entice uninformed clients into depositing their entire savings in what they referred to as a Ponzi scheme.
The lawsuit, which demanded a jury trial, listed several comments Mark made showing his interest and supposed firm in the bankrupt crypto firm. A part of the suit read,
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 suit claims that until its implosion and subsequent bankruptcy, Voyager was financially and publicly supported by Mark, the Dallas Mavericks, and other individuals. The civil suit further noted that Mark’s role as a public figure helped lure other investors to the firm.
The lawsuit classified Voyager as “deceptive “and “false,” adding that it was built on false promises. It wrote,
The Deceptive Voyager Platform is based upon false pretenses, false representations, and is specifically designed to take advantage of investors that utilize mobile apps to make their investments, in an unfair, unsavory, and deceptive manner. Simply put, Plaintiffs will prove that the Deceptive Voyager Platform is a house of cards, built on false promises and factually impossible representations that were specifically designed to take advantage of the cryptocurrency craze to the direct detriment of any ordinary investor.
Voyager’s crisis began after Three Arrows Capitals was declared insolvent. The crypto lender halted trading and withdrawals early last month and later filed for chapter 11 bankruptcy. According to reports, almost 5 billion dollars worth of crypto assets owned by over 3.5 million American users is currently locked on the platform.
However, the loan company recently announced that beginning on August 11, customers having U.S. dollars in their accounts can withdraw up to $100,000 in a 24-hour period, with the money arriving in 5–10 working days.
The lawsuit demands that Mark and Voyager’s CEO, Stephen, be held responsible for paying back loans to affected customers. More details on this story will emerge in the coming days.