Shark Tank's Mark Cuban Sued By Crypto Investors Over 'Ponzi Scheme'

According to the lawsuit, Cuban promoted Voyager Digital as a "customer himself".

Mark Cuban and the Mavericks are yet to comment on the lawsuit.

Source : Getty

San Francisco/New Delhi: A group of crypto investors has filed a class-action lawsuit against billionaire investor and Shark Tank icon Mark Cuban, along with his basketball team the Dallas Mavericks, for promoting crypto platform Voyager Digital which went bankrupt, resulted in billions of dollars in loss for its customers.

Top cryptocurrency broker Voyager Digital last month filed for bankruptcy in the US, resulting in more than 3.5 million investors losing $5 billion collectively.

According to Techcrunch, Voyager Digital's CEO Stephen Ehrlich has also been named as a defendant in the class-action suit filed in Florida federal court.

The plaintiffs have described Voyager as "an unregulated and unsustainable fraud, similar to other Ponzi schemes".

The lawsuit alleged that "Cuban and Ehrlich personally reached out to investors both individually and through a partnership with the Dallas Mavericks, to encourage them to invest with the platform".

ALSO SEE: Mark Cuban Says Buying Virtual Land Plots In Metaverse Is ‘Dumb’: Here's Why

Voyager Digital had significant investments in Singapore-based hedge fund Three Arrows Capital (3AC), which failed to make payments on a loan of 15,250 Bitcoins and $350 million USDCs — that makes the loan worth more than $650 million.

Voyager suspended all trading, deposits, withdrawals, and loyalty rewards on its platform before filing for bankruptcy.

The Dallas Mavericks launched their exclusive, five-year partnership with Voyager in October 2021, giving fans cash rewards for making trades on the platform.

According to the lawsuit, Cuban promoted the company "as a Voyager customer himself, in a ploy to dupe investors into believing that Voyager was a safe platform".

ALSO SEE: Nightmare Waiting For Crypto Industry: Mark Cuban On US SEC Regulations

Mark Cuban and the Mavericks are yet to comment on the lawsuit.

Voyager has said it was actively pursuing all available remedies for recovery from 3AC.

It had approximately $1.3 billion of crypto assets on the platform and more than $350 million of cash for customers.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.