A class action lawsuit against Mark Cuban alleges that Travel is a Ponzi scheme and accuses the billionaire of promoting it to novice investors.
- Mark Cuban is being sued for promoting Voyager.
- The documents argue that Voyager is a Ponzi scheme.
- Voyager filed for bankruptcy last month.
Reputed investor Mark Cuban is facing new legal action accusing him of promoting the beleaguered cryptocurrency platform, Voyager Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. .
The legal documents which were picked up by several news outlets, allege that Cuban was a key player in attracting customers to the company. Travel a crypto-lender that has filed for bankruptcy, was described in the lawsuit as a “bankrupt” crypto-lender. Ponzi scheme “.
As reported by Cointelegraph the law firm of Moskowitz, the law firm of Moskowitz submitted the civil lawsuit at issue in the U.S. District Court for the Southern District of Florida, accusing Cuban and the CEO of Travel Steve Ehrlich, for having promoted the ” misleading “, which offered unregulated cryptocurrency products among inexperienced investors.
The lawsuit adds that Cuban would have argued in favor of the company, recommending it on numerous occasions. as the best among the competition due to its low costs and commercial services”. no commissions ” according to the report, which cited a 92-page excerpt from court documents.
Cuban and Ehrlich went to great lengths to use their experience as investors to deceive millions of Americans into investing, in many cases, their life savings, in the deceptive Voyager platform a place to buy, sell and store cryptocurrency and purchasing Voyager Earn (‘EPA’) accounts, which are unregistered securities.
Cuban and his team are accused Dallas Mavericks
The NBA basketball team, Dallas Mavericks owned by Mark Cuban, was also named in the lawsuit. The investors argued that Travel leveraged the vocal support of the billionaire and his sports team to promote itself and encourage retail investors to flock to the platform despite and without warning of the risks.
As you remember Blockworks , Dallas Mavericks partnered with Travel to raise brand awareness and drive cryptocurrency adoption in October last year. The company, like others in the industry, was on a marketing campaign among sports figures, and had partnered with others, including NFL player Rob Gronkowski.
“ The very public support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. of the Dallas Mavericks and their owner, Mark Cuban, including their recent massive investment in the Deceiver Voyager Platform, provides a great example of how the Voyager Defendants are targeting unsophisticated investors with false and misleading promises of huge profits in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. marketplace “, the lawsuit says, as quoted by Blockworks.
The Mavericks The team, as well as its owner, have been cryptocurrency-friendly for a long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. time. Three years ago, the basketball team began accepting payments in cryptocurrencies. Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. and, more recently, last year, en Dogecoin . Cuban also speaks frequently in favor of cryptocurrencies and has become a well-known spokesperson for the crypto space.
Travel at the heart of the problems
According to the coverage of Blockworks The legal actions are not new and a similar class action lawsuit in December. After an update in April, the complaint was suspended as a result of the bankruptcy of Travel which led to a new presentation this week.
The plaintiffs have been attempting to document both Cuban’s endorsement of Voyager Digital as its million-dollar losses associated with the failed stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. project. Iron Finance which the investor also publicly endorsed just before its collapse. The lawsuit is demanding a jury hearing for the case, he adds. Cointelegraph .
Travel is one of the crypto lenders under siege amid the steep price drop in the digital asset market. The firm filed for bankruptcy in New York on July 5, a few days after freezing withdrawals on its platform due to liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. problems.
Currently, more than 3.5 million U.S. customers have nearly USD $5 billion worth of cryptocurrencies frozen on the platform, according to Cointelegraph . The firm was recently authorized by a judge to devolver USD $ 270 millones in client a client is software that can access and process blockchain transactions on a local computer. A common application of this is a cryptocurrency software wallet. funds. It has also informed that those with US dollars in their accounts will be able to withdraw up to USD $100,000 from August 11.
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Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Nicole León under license Creative Commons CC-BY