Mark Cuban named in lawsuit following Voyager sponsorship

Voyager is a platform with which Cuban and his NBA team had a five-year corporate sponsorship package. Voyager fell into bankruptcy in July 2022, taking circa USD 5 billion of its users' funds with it. According to the lawsuit, Cuban was more than just an investor. According to documents, Cuban and the Mavericks allegedly were an essential part of Voyager's business plan, and the billionaire and the brokerage preyed specifically on ‘young and inexperienced investors’ new to the crypto game, Futurism reports.

According to the court filing, ‘Cuban and Ehrlich went to great lengths to use their experience as investors to dupe millions of Americans into investing — in many cases, their life savings — into the Deceptive Voyager Platform’. The suit calls the Cuban-Voyager endeavour ‘an unregulated and unsustainable fraud, similar to other Ponzi schemes,’ claiming that Cuban and Ehrlich exaggerated the supposed ease and accessibility of the platform while over-minimizing the fraught market's blatant risks, according to Futurism.

According to CBS News, Cuban once called Voyager ‘as close to risk free as you're gonna get in the crypto universe’. At a 2021 press conference, Mark Cuban made his intentions encouraged young investors, talking about the ‘untapped potential in the future of digital currencies and it's an attractive investment for novice investors who might only have USD 100 to start’.

As Futurism puts it, Voyager wasn't as safe as Cuban and Ehrlich promised. The collapse of Three Arrows Capital was enough to impact the brokerage, and whether either Cuban or Ehrlich has to pay up or not, their reputations could be permanently damaged. Futurism concluded by citing the suit: ‘Simply put, the Deceptive Voyager Platform is a house of cards, built on false promises and factually impossible representations that were specifically designed to take advantage of the cryptocurrency craze to the direct detriment of any ordinary investor’.

According to the Dallas Observer, which cites the lawsuit filing, over 3.5 million Americans have allegedly lost over USD 5 billion in crypto assets, and the suit’s ultimate goal is to have Elrich, Cuban, and the Dallas Mavericks pay the people back.