San Francisco/New Delhi: Mark Cuban, a billionaire investor and Shark Tank icon who endorsed the crypto platform Voyager Digital, which went bankrupt, resulting in billions of dollars in losses for customers, has been sued in a class action lawsuit by crypto investors.
It is estimated that more than 3.5 million investors have lost $5 billion as a result of the bankruptcy of top cryptocurrency broker Voyager Digital last month in the US.
The class-action suit filed in Florida federal court has also named Voyager Digital’s CEO Stephen Ehrlich as a defendant.
According to the plaintiffs, Voyager is like other Ponzi schemes in that it is unregulated and unsustainable.
Among the complaints was that Cuban and Ehrlich personally contacted investors to encourage them to invest with the platform, through both an individual and a partnership with the Dallas Mavericks.
A loan worth over $650 million was made to Singapore-based Three Arrows Capital (3AC), which failed to make payments on its loan of 15,250 Bitcoins and $350 million USDCs.
The Voyager platform was suspended before filing for bankruptcy, which included all trading, deposits, withdrawals, and loyalty rewards.
In October 2021, Dallas Mavericks and Voyager officially launched an exclusive, five-year partnership, offering fans cash rewards for trading.
A lawsuit claims Cuban used his personal experience as a Voyager client to promote the company as a safe investment.
The lawsuit has not yet been commented upon by Mark Cuban and the Mavericks.
A spokesperson for Voyager said all available remedies for recovery from 3AC were being pursued.
A total of $350 million of cash was available for customers on the platform, along with approximately $1.3 billion in crypto assets.
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