cryptocurrency

Mark Cuban sued for promoting Voyager Digital

As the cryptocurrency space continues to crash and burn, numerous lawsuits have begun to pile up from unhappy investors who have likely lost thousands or even millions of dollars in the past few months. one of the Latest upcoming lawsuits Against Mark Cuban, billionaire investor and crypto bull, and his basketball team, the Dallas Mavericks.

Mark Cuban may be directed to court

The team and Cuban were sued for promoting Voyager Digital, a recently bankrupt and on fire crypto company. Voyager is just one of several companies that have filed for Chapter 11 bankruptcy as a way to protect themselves from crypto investors who are suffering from the heat of the many meltdowns that have occurred in recent weeks. Other companies participating in similar protocols include crypto hedge fund Three Arrows Capital.

The class action lawsuit against Cuba was created by nearly 3.5 million investors, all of whom lost up to $5 billion through their investments in Voyager Digital. That company’s CEO, Stephen Ehrlich, has also been named as a defendant in the lawsuit.

Shane Sepinni – founder of Seppinni LLP – is an attorney who has been involved in several previous crypto-based lawsuits. He offered his thoughts on the situation in a recent discussion, claiming:

While cryptocurrency prices were on the rise, many web3 companies, apparently including Voyager, pretended that existing laws and regulations did not apply to cryptocurrencies. Even smart people like Mark Cuban have been caught up in the hype, but now that crypto prices have collapsed, it’s clear that centuries-old legal theories like fraud, breach of fiduciary duty, and civil conspiracy apply to cryptocurrencies as they are. in another place.

Are investors forced?

While this is not intended as a defense of Cuban or anyone else named in the corresponding documents, it is likely that something like this would be difficult to pursue in court since no one is forcing the people who are suing to invest in the company. A question. It’s not like someone pointed a gun to their heads and said, “Invest or I’ll shoot.” It is likely that the Dallas Mavericks and Mark Cuban have contracts with Voyager Digital, and these contracts set out the promotional terms in which everyone will be required to participate.

From there, investors had a choice to either put their money into Voyager Digital or avoid the company altogether. Ultimately, it was the investors who made their choices themselves, and if something didn’t go well, that’s part of the game. Cryptography can be up and down; It is difficult to predict what will happen in the space, which is why many crypto heads are asking traders to be careful.

Tags: Dallas Mavericks, Mark Cuban, Voyager Digital

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