On Wednesday, the billionaire entrepreneur and crypto enthusiast Mark Cuban was slapped with a class-action lawsuit for promoting the bankrupt crypto brokerage firm Voyager Digital and its crypto products.
The Moskowitz Law Firm filed the lawsuit in the United States District Court in Southern Florida against Cuban demanding a jury hearing for the case.
The filing further alleged Cuban and Voyager Digital CEO Stephen Ehrlich used their years of experience as investors to coax inexperienced users into investing their life savings in ‘Deceptive Voyager Platform’. The filing alleged that Voyager was an unregulated and unsustainable fraud like other Ponzi schemes.
The lawsuit has accused Cuban of misrepresenting the firm several times and also making suspicious claims of Voyager being cheaper than its rivals. Cuban has also allegedly made claims that Voyager offers “commission-free” trading services as per the lawsuit.
It is also alleged that Cuban hyped Voyager’s products continuously and encouraged retail investors to invest in it even though he knew it.
“Mark Cuban, in turn, went on record calling the Deceptive Voyager Platform ‘as close to risk free as you’re gonna get in the crypto universe”, read the claims.
As per the allegations, Voyager Platform depended upon Cuban’s and the Dallas Mavericks’ open support and Cuban’s ‘monetary investment’ for consistently sustaining itself till Voyager’s subsequent bankruptcy.