Mark Cuban was sued for promoting Voyager crypto products

The Moskowitz law firm filed a class-action lawsuit against the billionaire in the US District Court in South Florida. According to the suit, Voyager Digital CEO Mark Cuban and Stephen Ehrlich lured young and inexperienced investors who happened to be fans of his professional basketball team to invest their money in the brokerage firm.

The lawsuit also accused them of running a Ponzi scheme and repeatedly misrepresenting the platform, resulting in many young investors losing their entire savings. Cuban and Ehrlich allegedly advertised the firm as a commission-free platform that required no fees and was cheaper than other competitors.

However, investors were allegedly paying exorbitant rates and hidden fees, all without their knowledge.

Mark Cuban said:

“I have to add, I have been a Voyager customer for several months. I love using the platform, it's easy, it's cheap, it's fast and the prices are actually really good, so we think it's the perfect solution for our Mavs fans of all ages.”

The lawsuit added:

“Cuban and Ehrlich went to great lengths to use their influence as investors to entice millions of Americans to invest, in many cases, their life savings – in the Deceptive Voyager Platform and purchase Voyager Earn Program (“EPA”) accounts that are unregistered securities."

Mark Cuban was accused of promoting Voyager's products and encouraging retail investors to invest in them despite his knowledge of the illegal scheme. The lawsuit further states that "Voyager's platform relied heavily on the support of Cuban's followers and Dallas Mavericks supporters and his monetary investment to sustain itself until its implosion and Voyager's subsequent bankruptcy."

Voyager Digital filed for bankruptcy in early July. All trades, deposits and withdrawals on the company's platform were subsequently suspended.

The bankruptcy filing also revealed that there are more than 100,000 creditors and the estimated value of assets ranges from $1 billion to $10 billion. Currently, nearly $5 billion in cryptocurrency assets owned by more than 3.5 million US users are frozen on the platform.

Voyager Digital issued a statement on August 5 that cash withdrawals on the platform would resume on August 11. The announcement came after a court approved the company's request to once again grant users access to money deposited at Metropolitan Commercial Bank.

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