Shark Tank member Mark Cuban, the owner of the Dallas Mavericks, and Voyager Digital CEO Stephen Ehrlich are now being sued. The two entrepreneurs are charged for allegedly promoting Voyager Digital’s crypto products, which the promoters insist was a ‘massive Ponzi scheme’ into which Ehrlich and Mark Cuban duped “millions of Americans into investing.”
This class action lawsuit, filed in the United States district court of the southern district of Florida, alleges that Ehrlich and Cuban strived extensively to use their experience as investors to lie to millions of Americans convincing them to invest their life savings into the Deceptive Voyager Platform and buying Voyager Earn Program Accounts (‘EPAs’), which are unregistered securities.
“As a result,” this lawsuit maintains:
“Over 3.5 million Americans have now all but lost over $5 billion in cryptocurrency assets. This action seeks to hold Ehrlich, Cuban and his Dallas Mavericks responsible for paying them back.”
The lawsuit continues, stating that during a Mavericks press conference team owner Cuban stated that he:
“Strongly supported and touted the partnership between his company and the Voyager defendants.”
Based on The Dallas Morning News, the top executive and managing partner of the Miami-based Moskowitz Law Firm, Adam Moskowitz, stated:
“Mark Cuban was going around doing a roadshow with Ehrlich saying that he did an investigation and that this was a safe investment. And we just couldn’t figure out how could he say that? I mean, in a very quick minute, our experts are saying it’s a scam. So what’s going on here? Something was very strange.”
But, Cuban insists that he personally invested in the platform.
The suit also says that Voyager, along with its executives, had managed to make false and deceptive deposit insurance claims aiming to increase investor confidence in the product. However, in July the Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) sent a joint letter that advised Voyager to stop making such allegations that “likely misled” retail investors.Buy Crypto Now
Voyager also ran into trouble after lending money to a hedge fund to trade crypto on its platform. But after the crypto price crumbled, the hedge fund could not pay back Voyager. By June, Three Arrows Capital (3AC) defaulted on its Voyager loan that was worth nearly $670 million. Later, Voyager filed for bankruptcy.
“It’s like a Ponzi scheme. When someone says, ‘I want my money back,’ they tell you, ‘Well, it was used to pay Peter, and now we have no money to pay you.'”