New lawsuit accuses billionaire shark tank Investor Mark Cuban has partnered with now-bankrupt crypto platform Voyager Digital to trick investors into a “mega Ponzi scheme.”
A class action lawsuit filed on Wednesday on behalf of millions of investors alleges that 3.5 million Americans have lost more than $5 billion in crypto assets through Voyager. It says the plan relied on vocal and financial support from Cuba.
Stephen Ehrlich, CEO of Voyager, and the Dallas Mavericks, Cuban’s NBA team, are also listed as defendants. The suit says the Cubans, Ehrlich and the Mavericks must pay compensation to the victims.
The lawsuit alleged that “the Cubans and Ehrlich, as it will be made clear, went to great lengths to use their experience as investors to deceive millions of Americans into investing – and in many cases, their life savings.”
Cuban did not immediately respond to a request for comment on the lawsuit.
The lawsuit, filed by Miami’s Moskowitz Law Firm, said Cobain and Ehlrich “personally contacted investors, individually and through the Dallas Mavericks, to urge them to invest in the fraudulent Voyager platform.”
The managing partner of the law firm Adam Moskovitz said in a statement that Cuban is not above the law.
“He works tirelessly to win the trust of hundreds of thousands of consumers across the country, who all trust and rely on him for their investment advice,” Moskovitz said.
The Mavericks first announced an exclusive five-year partnership with Voyager in October 2021. Fans were given a limited deal where if they deposit $100 and trade at least $10 by the end of the month, they will receive a $100 bonus. The influx of new users was so great that Voyager added a queue.
The Partnership announcement of the Mavericks team said that Voyager was a way to “earn high returns while getting skin in the game”. He also said it was an “attractive investment for novice investors who may only have $100 to get started.”
Voyager temporarily suspended all trading and withdrawals on its platform on July 1, shortly before filing for bankruptcy in New York on July 5, listing both assets and liabilities between $1 billion and $10 billion.
Voyager Digital’s stock has fallen more than 98% over the past year to less than $1. company symbol, VGXis down more than 90% over the same time period.
The timing of the partnership was less than ideal. It was launched last October, just weeks before the cryptocurrency peaked in November before crashing. Since early November, the global cryptocurrency market cap has been capped He fell From $2.9 trillion to $1.2 trillion.