Mark Cuban, a billionaire with investments in multiple ventures, is being sued by investors of the embattled crypto loan platform, Voyager Digital. The lawsuit was filed at the US District Court in Southern Florida by the Moskowitz Law Firm, attracting the crypto community’s attention.
Some Voyager Digital investors that double as fans of the Dallas Mavericks, a basketball club over which the billionaire holds sway, are suing because they believe that Cuban used his influence to convince them to participate in the bankrupt crypto lending firm.
The lawsuit claims that both the CEO of Voyager Digital, Stephen Ehrlich, and Mark Cuban conspired to manipulate young fans of the club to invest and lose their funds in the defunct crypto loan firm, which they now consider a Ponzi scheme.
In the suit, the crypto loan firm was classified as a Ponzi scheme while also naming it the Deceptive Voyager Platform.
The suit explained, “how Defendants Mark Cuban and Stephen Ehrlich were key players who personally reached out to investors, individually and through the Dallas Mavericks, to induce them to invest in the Deceptive Voyager Platform.”
In the suit, it was stated that Cuban and Ehrlich used 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.”
As a result of the above, the suit claims that “over 3.5 million Americans have now all but lost over 5 billion dollars in cryptocurrency assets. This action seeks to hold Ehrlich, Cuban, and his Dallas Mavericks responsible for paying them back.”
Furthermore, the suit claims that the bankruptcy crypto loan firm was peddled as an FDIC-insured organization, which seemed false.
It also went on to add that “Ehrlich also misrepresented Voyager’s FDIC insured status, repeatedly stating that assets held in the Deceptive Voyager Platform are as “safe” as if they were in a bank, misleading customers and prospective customers with the false impression that any cryptocurrency assets held on the Deceptive Voyager Platform were FDIC insured.”
The suit explained why Voyager and its investments could not enjoy coverage from the FDIC.
“The FDIC is a government agency tasked with guarding the public’s bank accounts — such as checking, savings and CDs — against unforeseen losses. Having a FDIC insured account means that anyone who has up $250,000 deposited into a bank would have their money reimbursed if the bank unexpectedly fails. However, speculative investments such as stocks and cryptocurrencies typically aren’t FDIC insured.”
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