Voyager Digital, Mavs Fans Sues Mark Cuban for Alleged Ponzi Scheme

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  • Investors in Voyager Digital and fans of Mark Cuban’s basketball team, Dallas Mavericks, have launched a lawsuit against the billionaire.
  • The lawsuit claims Cuban used false claims to promote Voyager Digital, prompting investors to put in their life savings.
  • Voyager filed for chapter 11 bankruptcy after suspending withdrawals and other services.

A lawsuit was filed against the billionaire Mark Cuban by investors in Voyager Digital and supporters of his own basketball club, the Dallas Mavericks. Moskowitz Law Firm, P.A., is the plaintiff in the class action lawsuit submitted to the United States District Court for the Southern District of Florida.

In the suit, it was stated that Cuban had oversold the company on many occasions, making questionable claims, such as the company offering commission-free trading services and that it was cheaper than its competitors.

According to the allegations made in the lawsuit, Cuban and Stephen Ehrlich, CEO of Voyager Digital, took advantage of their many years of industry expertise to persuade less knowledgeable consumers to deposit their life savings in what they referred to as a Ponzi scheme.

The lawsuit asserts that Cuban made the following statement:

I gotta add, I am a [Voyager] customer and I’ve been a customer for several months now. I like to use it, it’s easy, it’s cheap, it’s fast, and the pricing is actually really good, so we find it as a perfect fit for our Mavs fans and reaching Mavs fans of all ages.

The lawsuit added, “Voyager Platform relied on Cuban’s and the Dallas Maverick’s vocal support and Cuban’s monetary investment in order to continue to sustain itself until its implosion and Voyager’s subsequent bankruptcy.”

Voyager Digital filed for chapter 11 bankruptcy at the beginning of July. The company has temporarily suspended account funding, trading, and withdrawals. The bankruptcy file also revealed that the company has more than 100,000 debtors, and investments were valued at between $1 billion and $10 billion.