The Dallas Mavericks proudly announced a five year deal with crypto currency trading platform Voyager Digital last year. Owner Mark Cuban followed the age old advertising trend of pointing out that not only was Voyager a new sponsor, Cuban was a client, trading cryptocurrency on the platform himself.
Cuban made it clear that he enjoyed the low fees and ease of trading Voyager provided. Since that time Voyager has filed for bankruptcy and billions of dollars of customers money is frozen or lost.
The Moskowitz Law Firm based in Coral Gables, Florida has filed a class action lawsuit on behalf of those customers. Mark Cuban is one of the parties named in the suit. They go so far as to allege that Voyager was a “Ponzi scheme” which allowed Cuban and Voyager CEO Stephen Ehrlich to dupe unsophisticated investors into placing large sums of money into a very volatile asset with false claims of security.
The lawsuit specifically points out several of Cuban’s statements on Voyager’s behalf such as calling it “as close to risk-free as you’re gonna get in the crypto.” Obviously, these investments turned out to be far from risk free as the platform has imploded.
This lawsuit continues a troubling trend of off the court issues involving Cuban and the Mavericks franchise which date back years including multiple sexual harassment scandals. It is still important to understand that this suit has been only been brought and is likely years from completion.
Cuban is the biggest name, with the deepest pockets of anyone involved with the company. That means that any lawsuit involving Voyager would include Cuban whether or not he has any culpability. This case will continue on, and has much more important implications than basketball as people have lost their life savings and potentially their futures.