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Law firm Moskowitz has filed a class action lawsuit in U.S. District Court in South Florida, holding billionaire Mark Cuban liable for promoting the bankrupt Voyager Digital to Dallas Maverick fans.
The complaint alleges that Mark Cuban and Voyager Digital CEO Stephen Ehrlich used their investing experience to direct inexperienced people to invest their savings in a pyramid scheme. Allegedly, they both distorted information about the platform several times, arguing that it does not imply commissions and is more profitable than competing solutions, which provided an undue market advantage.
It is also stated that Voyager’s prices were set in such a way that unsuspecting investors paid unreasonably high hidden fees.
In July, Cuban drew the ire of some Dallas Maverick fans over the collapse of the cryptocurrency lender. Note that the basketball franchise owned by Cuban signed a five-year contract with Voyager Digital last October, promoting the platform among fans as a cheap and easy way to join the growing cryptocurrency market.
However, in July, the crypto firm stopped withdrawing funds on its platform, raising fears of insolvency, and a few days later filed for bankruptcy in New York.
A recent announcement from the firm a week ago shows that the company will resume withdrawals after a judge approved the issuance of cash deposits worth $270 million.
Presumably, applications will be accepted from August 26. In addition, the company reports on the passage of the restructuring process and considers the possibility of selling the company.
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