Mark Cuban is being prosecuted for promoting Voyager Digital… Will the charges stand?

A class action lawsuit against Mark Cuban and the Dallas Mavericks, the basketball team he has owned since 2022, has been filed by a group of former Voyager Digital customers in Miami courts.

Plaintiffs allege Voyager founder Stephen Ehrlich and Cuban used “their experience as investors to trick millions of Americans into investing” in the bankrupt crypto lending platform, causing investors to lose over US$5 billion in digital assets.

The lawsuit claims Voyager was unregulated, unsustainable and acted like a classic Ponzi scheme, causing some customers to lose their life savings.

The following statement from Cuban was presented as evidence:

“I must add, I am a (Voyager) customer and have been a customer for several
months now. I love using it, it’s easy, it’s cheap, it’s fast, and the price is actually
really good, so we find it perfect for our Mavs fans and to reach Mavs fans
of all ages. »

Cuban also previously said that Voyager was “as close to risk-free as you can get in the crypto space” during a press conference he joined in tandem with Ehrlich.

Voyager was one of the most high-profile crypto lenders to fail in the recent market turmoil that saw billions in client funds disappear as Celsius, Three Arrows Capital, BlockFi and a series of smaller platforms made facing a liquidity crunch in a spiraling bear market.

Influencers in the spotlight

The class action lawsuit is potentially just one of many to come against so-called influencers.

High profile internet celebrities have regularly touted NFTs and cryptocurrencies on YouTube, Twitter and other social media platforms, many of which have turned out to be scams.

Jake Paul is one of the most active promoters of NFTs and cryptosystems, having recently been accused of making over $2 million by lending his name to various projects, including the Safemoon and Animoons scams.

A class action lawsuit filed against Safemoon in February also cites Jake Paul’s brother Logan, rapper Miles “Lil Yachty” Parks McCollum, DeAndre Cortez May (aka Soulja Boy), former Backstreet Boy Nick Carter and British YouTuber Ben Phillips. as defendants.

Even boxer Floyd Mayweather – whose net worth is estimated at $450 million – can’t resist promoting NFTs to his fans, even after being banned from promoting titles by the Securities Exchange Commission for his role in the $25 million crypto Centra. scam.

Mayweather, alongside DJ Khaled, French Montana and of course Jake Paul, were involved in the marketing of Bored Bunnies, an NFT collection that attracted investors for over $20 million in March.

Mayweather is also being sued, alongside Kim Kardashian and former basketball star Paul Pierce, for promoting the EthereumMax scam to their millions of followers.

Crackdown on crypto advertising lacks teeth

The UK government is seeking to strengthen laws on unauthorized financial promotions of high-risk assets, although the Financial Conduct Authority has admitted that its regulatory oversight of crypto promotions is limited.

In the United States, regulators can’t even agree on who has jurisdiction, and despite the slew of class action lawsuits, influencers have been held with little or no accountability for their questionable marketing practices.

Which brings us to the question: is there a chance that Cuba will face the consequences of promoting Voyager?

Perhaps, given the larger sums at stake in Voyager’s bankruptcy compared to the low-ball NFTs touted by Pauls et al, the lawsuit could generate more attention.

Previous Vehicles and businesses destroyed after authorities arrest drug cartel 'bosses' in western Mexico
Next Local Hammer Thrower Wins Commonwealth Games Silver Medal | NanaimoNewsNOW