(TheStreet) - Mark Cuban should have expected it.
Since crypto lender Voyager Digital filed for Chapter 11 bankruptcy, criticism of the billionaire and owner of the NBA Dallas Mavericks team has been raining down on social media.
These critics accuse him of promoting the platform and therefore hold him responsible for the losses they say they suffered as we wrote on July 8. These reproaches now result in a class action lawsuit against the successful entrepreneur.
These angry individual investors claim that Cuban and the Dallas Mavericks tricked them into investing in Voyager Digital, which went bankrupt and cost them some $5 billion in total, according to the complaint. The complaint is based on another complaint filed already in December against Voyager Digital.
The "deceptive" Voyager Platform "was an unregulated and unsustainable fraud, similar to other Ponzi schemes," claim the plaintiffs. "It was specifically alleged in detail in that complaint how defendants Mark Cuban and Stephen Ehrlich were key players who personally reached out to investors, individually and through the Dallas Mavericks, to induce them to invest in the deceptive Voyager platform."
Ehrlich is Voyager Digital's Chief Executive Officer.
$5 Billion in Losses
"Cuban and Ehrlich, as will be explained, went to great lengths to use their experience as investors to dupe millions of Americans into investing — in many cases, their life savings — into the deceptive Voyager platform and purchasing Voyager earn program accounts (“EPAs”), which are unregistered securities," the plaintiffs add.
"As a result, over 3.5 million Americans have now all but lost over $5 billion in cryptocurrency assets."
Plaintiffs, who say they want Cuban and Ehrlich to pay them back, primarily use the Shark Tank star's statements when signing a partnership between the Dallas Mavericks and Voyager Digital against him.
By Luc Olinga
August 14, 2022
