San Francisco and New Delhi August 12 : A group of crypto investors have filed a class-action suit against billionaire investor and Shark Tank icon Mark Cuban together with his team of basketball players,, the Dallas Mavericks, for promoting the cryptocurrency platform Voyager Digital that went bankrupt and caused in billions of dollars in losses for the customers. The top cryptocurrency exchange Voyager Digital last month filed for bankruptcy in the US and resulted in the loss of more than 3.5 million investors losing around $5 billion.
According to Techcrunch Voyager Digital’s chief executive Stephen Ehrlich has also been named as a defendant in the class-action suit filed in Florida federal court.
Plaintiffs have described Voyager as “an unregulated and unsustainable scam, similar with other Ponzi scams”.
The lawsuit claimed the fact that “Cuban and Ehrlich personally contacted investors, both on their own and through an alliance with the Dallas Mavericks, to encourage them to invest with the platform”.
Voyager Digital had significant investments in the Singapore-based hedge fund Three Arrows Capital (3AC) that failed to pay back the loan of 15,250 Bitcoins and $350 million USDCs which amounts to over $650 million.
Voyager stopped all deposits, trading withdrawals, and loyalty rewards on its platform prior to declaring bankruptcy.
The Dallas Mavericks launched their exclusive five-year partnership with Voyager in November 2021.The partnership will offer fans cash rewards when they trade via the website.
In the suit, Cuban claimed to have promoted the business “as as a Voyager user himself in an effort to convince investors that Voyager was a secure platform”.
Mark Cuban and the Mavericks have yet to comment on the lawsuit.
Voyager has stated that it was looking into all options to recover from 3AC.
It had around $1.3 billion of crypto assets on the platform, and over 350 million of cash available to customers.
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