Mark Cuban Sued For Promoting A ‘Ponzi Scheme’

Deep Gautam
4 Min Read

Mark Cuban, Dallas Mavericks’ owner, has encountered a class action lawsuit because he promoted the crypto products of Voyager Digital. According to plaintiffs, Voyager used to be a significant Ponzi scheme while Cuban duped many Americans into investing.
Voyager Investors sued Mark Cuban:

The lawsuit was filed against him in the U.S. district court of Florida’s southern district. Along with him, the file was charged against Voyager Digital CEO Steven Ehrlich. Twelve lead plaintiffs are available in total. Regarding the “Mark Cassidy v. Voyager Digital Ltd. et al.” case, it was filed in December last year.

mark cuban sued in a ponzi scheme

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According to the description from a lawsuit, they alleged that Cuban and Ehrlich went a lot to utilize their experience because the investors duped plenty of Americans into investing their life savings into the Deceptive Voyager Platform and buying the Voyager Earn Program Accounts. Therefore, it has caused loss of more than 5 billion dollars in cryptocurrency values for more than 3.5 million Americans. Ehrlich, Cuban, and his Dallas Mavericks were suspected of holding and being responsible for paying them back.

Mark Cuban told at a Dallas Mavericks press conference that he supported the partnership between Voyager defendants and his company. He described that as he helped personally will boost the chance and presence of the Deceptive Voyager Platform for people with limited funds and experience.

The misrepresentation and omission of Ehrlich and Cuban broadcasts around the nation via the network render them liable to plaintiffs and class members to solicit the buy of the unregistered EPAs.

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In addition, the lawsuit has also said that Cuban said that he was close to the Deceptive Voyager Platform to make it risk-free because you will go into the crypto universe. Moreover, he is excited that he invested his money into the Deceptive Voyager Platform to induce the retail investors to follow his way. According to the plaintiffs, the Deceptive Voyager Platform depends on false pretenses, false representations, etc. Furthermore, its design is especially done to benefit investors who use phone apps to invest their money or assets. Still, it was done unfairly and in a deceptive manner.

They also alleged that the Deceptive Voyager Platform was a huge Ponzi scheme. In addition, it depended on the Cuban’s and the Dallas Maverick’s vocal support and Cuban’s monetary investment to keep on sustaining itself until its implosion.

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It filed for bankruptcy the previous month, citing the contagion and volatility in the crypto markets for the last few months along with the default of Three Arrows Capital (‘3AC‘) on a loan from the subsidiary of the company. However, according to the recent updates, FDIC, standing for Federal Deposit Insurance Corporation, and the Federal Reserve Board ordered Voyager to cease the false statements. Along with this, it also does not allow you to mislead statements concerning the FDIC deposit insurance status.

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