Mar Cuban Will Face Trial Because Of Promoting Crypto Companies. American billionaire Mark Cuban will face a trial in court next month as part of an ongoing lawsuit against him by customers of bankrupt crypto lender Voyager. They accused Cuban of misrepresenting the company in promotional materials.
Reported by Yahoo Finance, Monday (16/1/2023), filed in US District Court in South Florida in August 2022, the lawsuit describes Voyager as a “massive Ponzi scheme” and highlights the aggressive promotion of Cuban among crypto startups and inexperienced retail investors, who Voyager and its promoters allegedly targeted.
In a court order Tuesday (10/1/2023), US Magistrate Judge Lisette M. Reid rejected Cuban’s request to split the deposition into two hearings. Instead, Cuban’s full deposition will take place in a single session on February 2, 2023.
Cuban made several statements that appeared to infuriate Voyager investors, including that the lender was virtually risk free.
Furthermore, the lawsuit accuses Voyager Digital of touting itself as a compliant and fully licensed crypto broker despite not being registered with the US Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), or any required Federal or state regulators. involved in overseeing the sale of securities.
After Terra’s slump, Voyager was one of several lenders affected by liquidity problems, which eventually led to the company filing for Chapter 11 bankruptcy in July last year.
Then at the end of the third quarter of 2022, US FTX won a bid to acquire Voyager’s remaining assets of USD 1.4 billion or the equivalent of IDR 21.7 trillion (assuming an exchange rate of IDR 15,539 per US dollar). The deal fell through after FTX spectacularly collapsed two weeks later.
Voyager reopened the bidding process in November. This time Binance.US emerged as the “best and highest bid” with over USD 1 billion or equivalent to IDR 15.5 trillion.
Previously, a class action lawsuit was filed in the US district court in the southern district of Florida against the famous billionaire Mark Cuban, Dallas Basketball Ltd. (DBA Dallas Mavericks), and CEO of Voyager Digital, Steven Ehrlich.
Mar Cuban Will Face Trial Because Of Promoting Crypto Companies. There are 12 main plaintiffs, referring to the case “Mark Cassidy v.Voyager DigitalLtd. The lawsuit was filed in December last year. They accused Cuban and Ehrlich of “going to great lengths to use their experience as investors to dupe millions of Americans into investing.
They allegedly solicited people to transfer their life savings into the fraudulent Voyager Platform and purchase Voyager Acquisition Program Accounts (‘EPA’), which are unregistered securities.
In other words, the Voyager Platform is deceptive and has a massive Ponzi scheme. The scheme relied on vocal support from Cuban and Dallas Maverick to Voyager.
“As a result, more than 3.5 million Americans have now lost more than $5 billion in cryptocurrency assets. This action seeks to hold Ehrlich, Cuban, and his Dallas Mavericks accountable for paying them back,” the lawsuit states. quoted from Bitcoin.com, Tuesday (16/8/2022).
The lawsuit also notes Cuban speaking at a Dallas Mavericks press conference, where he strongly supported and touted the partnership between his company and the Voyager defendants.
The plaintiff emphasized the Shark Tank star proudly described how he would personally help significantly increase the scope and presence of the Deceptive Voyager Platform for those with limited funds and experience.
“Ehrlich and Cuban’s representations and omissions made and broadcast across the country via the Internet make them liable to plaintiffs and class members,” the plaintiffs explained.
Voyager Digital itself filed for bankruptcy last month citing the volatility and prolonged contagion in the crypto market over the last few months, and defaulted Three Arrows Capital (‘3AC’) on loans from the company’s subsidiaries.
Previously, total cryptocurrency market capitalization reached its highest level in more than two months on January 13, 2023 after breaking above USD 900 billion or the equivalent of Rp. 13.804 trillion (assuming an exchange rate of Rp. 15,338 per US dollar).
During trading on Saturday (14/1/2023), according to data from Coinmarketcap, the entire crypto market capitalization on Saturday, January 14, 2023 managed to strengthen to a level of USD 939.6 billion or the equivalent of IDR 14,201 trillion.
Reporting from Cointelegraph, Saturday, January 14, 2023, although experiencing a 15.5 percent increase since the start of this year sounds promising, the overall crypto market capitalization is still 50 percent below the USD 1.88 trillion or equivalent to IDR 28,835 trillion that was achieved before the Terra-Luna ecosystem collapses in April 2022.
Mar Cuban Will Face Trial Because Of Promoting Crypto Companies. Currently, crypto traders and investors are pursuing bullish options for Bitcoin prices to a level of USD 20,000 or the equivalent of IDR 306.7 million to push crypto market capitalization back to soar above USD 900 billion.
Hopeful skepticism is the best description of most investor sentiment right now, especially after the recent struggle to recapture the USD 1 trillion market cap in early November 2022.
Bitcoin itself has gained 15.7 percent this year, but a different scenario has emerged for altcoins, with some of them gaining 50 percent or more in the same period.