Disgruntled Dallas Maverick fans and Voyager Digital investors have sued Mark Cuban. The reason behind the lawsuit was the bankruptcy of Voyager Digital and the depreciation of altcoin project VGX. Here are the details…
Sue Mark Cuban over Voyager and altcoin project VGX
The Moskowitz Law Firm has filed a lawsuit in the U.S. District Court in South Florida. Billionaire Mark Cuban was thus sued for his role in promoting the bankrupt Voyager Digital to Dallas Maverick fans. The complaint, says Stephen Ehrlich, CEO of Cuban and Voyager Digital, prompts inexperienced teens to invest their life savings in a “ponzi scheme.”
He claims the two men have benefited from years of investing experience to get inexperienced traders to invest in this kind of “fraud project.” In addition, the filing alleges that Cuban and Voyager Digital repeatedly misrepresented the platform as “free” and cheaper than other platforms, in order to gain an unfair market advantage. The court document contains the following statements:
Voyager defendants falsely claim that they are offering ‘100% Commission-Free’ cryptocurrency trading services to gain an unfair advantage over competitors such as Coinbase, Gemini, Kraken or Binance, which openly disclose commissions and fees. However, they do charge fees for cryptocurrency trading.
Mark Cuban draws backlash
According to the documents, Voyager prices were set in such a way that investors would pay unreasonably high hidden fees without their knowledge. As we have also reported as Kriptokoin.com, Mark Cuban had reacted in the past months. Cuban drew the ire of some Dallas Maverick fans, especially after the collapse of Voyager. Specifically, Cuban’s basketball team signed a 5-year deal with Voyager Digital in October last year. He then promoted the platform as “a cheap and easy way to get involved in the emerging crypto market.”
However, in July, the crypto company stopped withdrawal services on its platforms. He raised bankruptcy concerns and as a result filed for Chapter 11 bankruptcy days later in New York. The latest message from the firm less than a week ago reveals that the company will resume cash withdrawals today after a judge approved the release of $270 million in cash deposits. Customers with cash deposits will be allowed to withdraw up to $100,000 within 24 hours.
Additionally, the company reveals that it is currently going through a restructuring process and is tracking the firm’s potential sale. Specifically, he would start receiving offers from August 26. However, it remains unclear how customers with crypto assets will be charged.
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