Voyager asks the court to dismiss the lawsuit against Mark Cuban that was filled by investors against the Shark Tank billionaire. The aforementioned lawsuit alleged that Cuban targeted inexperienced investors and persuaded them to invest their money in the Voyager “Ponzi scheme”.
According to the story, the lawyers’ claim is that both Ehrlich and Cuban are linked to a similar action filed by the same group of plaintiffs against Voyager itself. It is vital to know that cases against corporations in bankruptcy are immediately stayed, which means that declaring bankruptcy halts numerous legal activities, including debt-collection lawsuits.
This does not, however, extend to other parties, including corporate executives. Nonetheless, bankruptcy courts sometimes agree to give interim protection to anyone associated with the business.
The Allegations Against Mark Cuban
The new revelation comes only two weeks after a class action complaint was filed in the United States District Court for the Southern District of Florida against Cuban, the Dallas Mavericks, and Steven Ehrlich, CEO of Voyager Digital.
The 12 main plaintiffs accused Cuban of targeting “young and inexperienced followers” and duping millions of Americans by promoting the firm on many occasions and taking “great lengths to leverage their experience as investors to deceive millions of Americans.”
They alleged that the Shark Tank star misled the plaintiffs about secret fees on Voyager crypto trading. According to court records, the lender’s Federal Reserve and Federal Deposit Insurance Corporation (FDIC) insured status is also being contested.
Cuban is also accused of participating at a Dallas Mavericks news conference when he reportedly appeared to aggressively encourage and endorse the Voyager defendants’ cooperation with his firm.
According to the plaintiffs, the millionaire entrepreneur proudly stated how he would personally assist in order to enhance the breadth and prominence of the Deceptive Voyager Platform for people with minimal means and skills.
The Voyager Saga
In July, Voyager Digital declared bankruptcy, citing “prolonged volatility and contagion in the crypto markets” as well as 3AC’s default on a loan from the company’s subsidiary.
The FDIC and the Federal Reserve Board recently ordered the crypto lender to stop making false and deceptive assertions about its FDIC deposit insurance status on its social media profiles, mobile app, and websites.
We will be following the story more closely as it develops, because so far it promises a wild ride, and it delivers.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]