Crypto

Mark Cuban Faces Class Action Lawsuit For Promoting Voyager Digital

Billionaire Mark Cuban has actually been among the most singing advocates of cryptocurrencies. He has actually likewise revealed this assistance by accepting cryptocurrency payments for the basketball group Dallas Mavericks, which he owns. Cuban’s venture into cryptocurrencies has actually likewise seen him ‘promote’ some platforms in the past, such as Voyager Digital, and as the cryptocurrency company has actually gotten in insolvency procedures, Cuban is capturing a few of the heat from dissatisfied financiers.

Class Action Lawsuit Against Mark Cuban

According to a filing in the United States District Court in the Southern District of Florida, a class action claim was brought versus billionaire Mark Cuban. The filing declared that Mark Cuban had actually helped the business in defrauding countless Americans.

In this filing, Cuban’s remarks relating to Voyager Digital were estimated. The billionaire had actually mentioned that he utilized the platform, and provided his impact in the area, lots of had actually done the same utilizing the platform. All had actually worked out for a while, up until 2022, when the causal sequences of the LUNA crash started to reveal, and Voyager Digital had actually been captured in the crossfire. Not long after, the business declared insolvency after being not able to pay back user funds.

Along with Mark Cuban, Stephen Ehrlich was likewise pointed out in the claim. Ehrlich was the CEO of the now-defunct platform and has actually mentioned in the past that they had a working relationship, stating Cuban has actually been a consultant to him. The claim declares that the platform’s tremendous development was credited to Cuban’s extremely singing and financial backing of it, in addition to the assistance of the Dallas Mavericks, which boasts countless fans in America.

Crypto market recuperates to $1.144 trillion | Source: Crypto Total Market Cap on TradingView.com

 “Cuban’s enthusiasm over the Voyager/Mavericks partnership was shared by Steve Erhlich, CEO and co-founder of Voyager, who said the company ‘could not be more excited’ about partnering with the Mavs,” the claim read.

Since the platform had actually stated insolvency, billions of user funds have actually been frozen. This has actually left more than 3 million United States users not able to gain access to crypto that they had actually at first transferred on the platform to make yield. Customers had in fact transferred funds thinking that their funds were guaranteed, however it ended up to not hold true.

The latest advancement coming out was that Voyager Digital had actually provided $1.6 billion to Alameda Research, owned by FTX CEO Sam Bankman-Fried. The trading platform supposedly owes Voyager $370 million and has actually been among the business providing a bailout through the procedure.

However, the insolvency case continues to drag out, and the only reprieve provided to users up until now is a statement that users who had dollars in their accounts would have a $100,000 day-to-day withdrawal limitation from August 11th. The kicker is that the funds will be processed in between 5 to 10 organization days.

Featured image from CNBC, chart from TradingView.com

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Michael Evans

Professional writer, editor, and producer with over a decade of experience. I'm an experienced editor who has written for a variety of publications, and I specialize in editing non-fiction articles, news, and business blogs.

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