According to the aforementioned lawsuit, Cuban targeted inexperienced investors and convinced them to invest in the Voyager "Ponzi scheme.
According to the report, the attorneys assert that Ehrlich and Cuban are connected to a similar lawsuit filed by the same group of plaintiffs against Voyager. It is crucial to understand that cases against corporations in bankruptcy are immediately stayed, meaning that filing for bankruptcy halts a variety of legal actions, including debt-collection lawsuits.
However, this does not apply to other parties, including corporate executives. However, bankruptcy courts will occasionally grant interim protection to anyone associated with the company.
The Charges Made Against Mark Cuban
The new revelation comes only two weeks after a class action lawsuit was filed against Cuban, the Dallas Mavericks, and Steven Ehrlich, CEO of Voyager Digital, in the United States District Court for the Southern District of Florida.
The 12 principal plaintiffs accused Cuban of targeting "young and inexperienced followers" and deceiving millions of Americans by repeatedly promoting the company and "going to great lengths to use their experience as investors to deceive millions of Americans."
They claimed that the Shark Tank star misled the plaintiffs about hidden fees associated with trading Voyager cryptocurrency. According to court documents, the lender's status as insured by the Federal Reserve and Federal Deposit Insurance Corporation (FDIC) is also being challenged.
Cuban is also accused of appearing to aggressively encourage and endorse the Voyager defendants' cooperation with his firm during a Dallas Mavericks news conference.
According to the plaintiffs, the multimillionaire businessman boasted that he would personally assist in expanding the reach and visibility of the Deceptive Voyager Platform for people with limited resources and abilities.
The saga of Voyager
Voyager Digital filed for bankruptcy in July, citing "prolonged volatility and contagion in the crypto markets" and 3AC's default on a loan from the company's subsidiary.
Recently, the FDIC and the Federal Reserve Board ordered the cryptocurrency lender to stop making false and misleading claims 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 progresses because so far it has delivered on its promise of a wild ride.
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