San Francisco/New Delhi: A group of crypto investors has filed a class-action lawsuit against billionaire investor and Shark Tank icon Mark Cuban, along with his basketball team the Dallas Mavericks, for promoting crypto platform Voyager Digital which went bankrupt, resulted in billions of dollars in loss for its customers.
Top cryptocurrency broker Voyager Digital last month filed for bankruptcy in the US, resulting in more than 3.5 million investors losing $5 billion collectively.
According to Techcrunch, Voyager Digital’s CEO Stephen Ehrlich has also been named as a defendant in the class-action suit filed in Florida federal court.
The plaintiffs have described Voyager as “an unregulated and unsustainable fraud, similar to other Ponzi schemes”.
The lawsuit alleged that “Cuban and Ehrlich personally reached out to investors both individually and through a partnership with the Dallas Mavericks, to encourage them to invest with the platform”.
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Voyager Digital had significant investments in Singapore-based hedge fund Three Arrows Capital (3AC), which failed to make payments on a loan of 15,250 Bitcoins and $350 million USDCs — that makes the loan worth more than $650 million.
Voyager suspended all trading, deposits, withdrawals, and loyalty rewards on its platform before filing for bankruptcy.
The Dallas Mavericks launched their exclusive, five-year partnership with…
