Dallas Mavericks governor Mark Cuban is going through a class-action lawsuit for his promotion of bankrupt cryptocurrency brokerage Voyager Digital.
The Moskowitz Regulation Agency, based mostly in Coral Gables, Florida, filed a civil go well with towards Cuban in america District Court docket in Southern Florida, demanding a jury listening to for the case.
The go well with alleges that Cuban and Voyager Digital CEO Stephen Ehrlich used their affect to misrepresent the brokerage, making doubtful claims to lure in buyers and finally defrauding them.
“Cuban and Ehrlich, went to nice lengths to make use of their expertise as buyers to dupe tens of millions of People into investing—in lots of circumstances, their life financial savings—into the Misleading Voyager Platform and buying Voyager Earn Program Accounts (‘EPAs’), that are unregistered securities,” the lawsuit alleges.
The go well with continues, describing Voyager Digital as an “unregulated and unsustainable fraud, just like different Ponzi schemes” that “particularly goal[s] younger and inexperienced buyers.”
A spokesperson for the Mavericks stated that the staff doesn’t have a remark right now.
Cuban and the Dallas Mavericks introduced a five-year partnership with Voyager in October 2021, making Voyager the official cryptocurrency brokerage of the Mavericks. Their signage appeared all through the American Airways Heart throughout Mavericks’ residence video games in the course of the 2021-22 season.
“We perceive that there’s plenty of hype, plenty of dialogue behind it, however most individuals don’t perceive the basics behind it,” Cuban stated about cryptocurrency in the course of the press convention saying the partnership.
“We’re actually going to attempt to carry that degree of schooling to our followers and to our joint clients. I feel we’re going to increase this far deeper than simply Mavs followers. I feel Voyager goes to be a frontrunner amongst sports activities followers and crypto followers across the nation.”
Voyager paused all buying and selling and withdrawals on its platform on July 1, 2022. 4 days later, the corporate filed for Chapter 11 in america Chapter Court docket for the Southern District of New York. Greater than 3.5 million American clients have almost $5 billion in frozen belongings on the platform.
The choose presiding over Voyager’s chapter proceedings in New York cleared the corporate to return $270 million in buyer funds held on the Metropolitan Industrial Financial institution. Withdrawals had been set to start in August 2022.
Plaintiffs within the lawsuit are searching for costs for aiding and abetting fraud, aiding and abetting breach of fiduciary, civil conspiracy and unjust enrichment. As well as, the go well with lists reduction within the type of “awarding precise, direct and compensatory damages.”