Mark Cuban is known for being the billionaire owner of the Dallas Mavericks, a Shark Tank star, and not much else. However, one addition to the billionaire’s lineage is a huge class action lawsuit over a failed cryptocurrency exchange platform. Would you have it, it’s already been compared to a Ponzi Scheme.
Lawsuit woes for Mark Cuban
According to the lawsuit, Mark Cuban and Stephen Ehrlich are being sued by cryptocurrency lender Voyager Digital for duping young people into investing in crypto and losing money. It also claims that Cuban and the Dallas Mavericks were supposed to be a huge part of Voyager Digital’s business plan.
Voyager Digital, the crypto lender that Mark Cuban and Stephen Ehrlich invested in, went bankrupt last month, taking $5 billion worth of its users’ funds. Cuban and Ehrlich are being blamed for manipulating young and inexperienced people into investing their funds into the crypto platform.
"Cuban and Ehrlich," reads the court filing, "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."
While we’ll wait for court officials to do their job, it’s not a good look for Cuban or Ehrlich. The fact that they took advantage of inexperienced citizens is a bad move all around and they’ll need a good lawyer to get themselves out of this jam.
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Seeing Mark Cuban involved in a crypto Ponzi Scheme is somewhat amusing. Prior to this, Cuban had dissed buying virtual land for the metaverse, which is often associated with crypto and NFTs. We doubt Cuban sees the irony here since he likely focused on the money he would make.
This isn’t the first time a celebrity has been accused of crypto schemes. A number of celebrities like Paris Hilton and Justin Bieber were accused of shilling NFTs without proper legality. Like these celebrities, we doubt anything major will happen to Mark Cuban in the long run.