HomeStock marketCrypto traders sue Shark Tank icon Mark Cuban over 'Ponzi scheme'- Newslength

Crypto traders sue Shark Tank icon Mark Cuban over ‘Ponzi scheme’- Newslength

San Francisco/New Delhi: A bunch of crypto traders has filed a class-action lawsuit in opposition to billionaire investor and Shark Tank icon Mark Cuban, alongside along with his basketball group the Dallas Mavericks, for selling crypto platform Voyager Digital that went bankrupt, resulted in billions of {dollars} in loss for its clients.

High cryptocurrency dealer Voyager Digital final month filed for chapter within the US, leading to greater than 3.5 million traders shedding $5 billion collectively.

In line with Techcrunch, Voyager Digital’s CEO Stephen Ehrlich has additionally been named as a defendant within the class-action swimsuit filed in Florida federal courtroom.

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”.

Voyager Digital had important investments in Singapore-based hedge fund Three Arrows Capital (3AC), which did not make funds on a mortgage of 15,250 Bitcoins and $350 million USDCs — that makes the mortgage price greater than $650 million.

Voyager suspended all buying and selling, deposits, withdrawals and loyalty rewards on its platform earlier than submitting for chapter.

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

In line with the lawsuit, Cuban promoted the corporate “as a Voyager customer himself, in a ploy to dupe investors into believing that Voyager was a safe platform”.

Mark Cuban and the Mavericks are but to touch upon the lawsuit.

Voyager has mentioned it was actively pursuing all accessible treatments for restoration from 3AC.

It had roughly $1.3 billion of crypto belongings on the platform and greater than $350 million of money for patrons.



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