Mark Cuban was slammed for parenting with crypto asset broker Voyager Digital. Now he is facing a lawsuit accusing him of misleading investors in favor of Voyager Digital.
Allegations against Mark Cuban
Cuban, who is the owner of NBA Dallas Mavericks, has been accused of using Voyager Digital as a Ponzi scheme targeting young and inexperienced investors in a class-action lawsuit filed in the U.S. District Court for the Southern District of Florida on Wednesday.
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The lawsuit also accuses Stephen Ehrlich, CEO and co-founder of Voyager Digital, for partnering with Cuban in robbing over a million investors of their funds that total up to $5 billion.
Fortune cited from the lawsuit the accusation against Mark Cuban and Stephen Stephen as:
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.
Angry customers of Voyager Digital claim that they had to pay “exorbitant hidden commissions” on every crypto trade despite being told by Voyager Digital that they had “100% commission-free” crypto trading.They call the Voyger “unregulated and unsustainable fraud.”
Failure of Digital Voyager
In October last year, Mark Cuban’s Dallas Mavericks entered a 5-year partnership with Voyager Digital and Cuban announced rewards in cryptocurrency for fans to join the crypto trading platform. The trade didn’t fare well and Voyager Digital filed for bankruptcy last month, halting trading and withdrawals. Mark Cuban came under criticism by fans over the crypto downturn.
Things went from bad to worse when the Federal Deposit Insurance Corp (FDIC) detached itself from claims by Voyager Digital that it was insured by FDIC.
Yahoo Finance reported earlier this month that Voyager Digital is planning to resume user access to the app for cash withdrawals in a week. Crypto billionaire Sam Bankman-Fried, meanwhile, offered to buy the company’s assets but Voyager rejected the offer for being cheap.
