Mark Cuban, Dallas billionaire and Shark Tank investor, is known for his sharp business sense and success as an entrepreneur. But he is now facing a major class-action lawsuit that accuses Cuban of misleading investors due to his promotion of the now bankrupt cryptocurrency trading platform and brokerage Voyager Digital.
Voyager Digital, which went bankrupt in July, was led by Stephen Ehrlich, its CEO and co-founder. While it was still in business, the company primarily catered to small-time traders, using generous introductory rewards to pull people in. The end result was the company gaining over three million investors that put in around five billion dollars in funds.
The lawsuit against Mark Cuban points out that he and the Dallas Mavericks were instrumental in bringing people to the platform. Additionally, it describes Voyager Digital as “unregulated and unsustainable fraud.” The lawsuit also compares it to Ponzi schemes, which target the young and inexperienced.
Cryptocurrency has been wildly popular in recent years and is used in many different ways, but it has proven itself to be a volatile investment. There have also been many scams involving the digital currency, which have been made worse since reliable educational resources are scarce.
But none of that stopped people from investing, especially with the Cuban-owned Dallas Mavericks offering fans a deal and naming Voyager Digital the “official crypto partner of the Dallas Mavericks.”
The Mavericks signed…
