Users have filed a class action lawsuit against cryptocurrency broker Voyager Digital, accusing it of setting hidden transaction fees and misleading investors.
According to Bloomberg, the lawsuit was filed on December 24 in federal court in Miami. Voyager Digital customers claim that despite their claims of “zero commissions”, the broker includes “secret commissions” in the pricing of every trade. In most cases, they exceed the fees and commissions charged by its competitors, which they openly state. Voyager Digital’s head of public relations, Michael Legg, called the plaintiffs’ claims “fictitious and completely unfounded.”
Voyager plaintiff Mark Cassidy revealed that he started trading cryptocurrencies on Robinhood, but left the platform after being accused by the US Securities and Exchange Commission (SEC) of withholding information from users.
Cassidy later signed up with Voyager Digital because he was attracted by the broker’s announcement of commission-free transactions. After a while, he began to notice a large spread between the buy and sell prices, and began to suspect that something might be wrong here. Cassidy found reviews online claiming Voyager could include hidden fees, helping to widen the spread. According to the plaintiff, this negative experience discouraged him from all desire to invest in cryptocurrencies.
The lawsuit also provides preliminary analysis by Richard Sanders, co-founder of CipherBlade, and Stephen Castell, chairman of UK-based information technology firm Castell Consulting. They concluded that the total damage to platform users could exceed $ 1 billion.
Investors also mentioned Voyager Digital’s recent partnership with the Dallas Mavericks basketball club, which is owned by American billionaire Mark Cuban. According to the prosecution, this collaboration “clearly demonstrates that Voyager is targeting inexperienced investors by making false and misleading promises to make big profits in the cryptocurrency market.”
Plaintiffs’ lawyer Adam Moskowitz said that if Voyager expressed a willingness to put an end to its “illegal actions” and provided investors with reliable information within 75 days, his firm would not demand payment for legal services in this case.
Recall that in October Voyager Digital received official permission to trade digital assets in the markets of France and the European Union, and also announced plans to launch a mobile trading application early next year.
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