Class action lawsuit filed against Mark Cuban

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American billionaire Mark Cuban, owner of the Dallas Mavericks basketball team of the National Basketball Association, is facing a class-action lawsuit over advertising for the bankrupt crypto broker Voyager Digital. Also lawsuit filed against Voyager Digital CEO Stephen Ehrlich.

According to the lawsuit, Cuban and the head of Voyager personally contacted potential customers and urged them to invest. What’s more, Cuban’s basketball team is also named as a defendant in the lawsuit.

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Law firm Moskowitz alleges that the defendants went to great lengths to use their image to attract investors. The lawsuit also notes that Cuban has previously pursued dubious investment schemes by backing the failed stablecoin Iron Finance.

The plaintiffs believe that Voyager Digital was a “large pyramid scheme” that depended on the support of Cuban and his basketball club.

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Recall that in July the broker Voyager Digital filed for bankruptcy under Chapter 11 of the Bankruptcy Code in the United States. The firm has valued its assets at $1 billion and its liabilities at $10 billion. The number of creditors has exceeded 100,000.

In a statement dated July 6, the broker said about $1.3 billion worth of crypto assets were blocked on the platform, with another $350 million of cash held in an FBO account with Metropolitan Commercial Bank (note: the FBO account is for client funds). Voyager says customers will be able to access their dollars once “the reconciliation and fraud prevention process has been completed.” However, how long it will last is unclear.

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Source: Cryptocurrency

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