Mark Cuban Facing a Lawsuit After Allegedly Promoting Crypto Ponzi Scheme

Mark Cuban, known as an avid cryptocurrency investor and owner of NBA team Dallas Mavericks, is currently facing a lawsuit after he reportedly promoted Voyager Digital's crypto products.

The plaintiffs of the lawsuit claimed that Cuban promoted the products, which were "a massive Ponzi scheme."

They added that Cuban and Voyager Digital CEO Stephen Ehrlich had conned millions of people into investing in the scheme, according to a Newsmax report.

The U.S. district court of the southern Florida district handled the filing of the class action lawsuit.

Ehrlich was also named in the class action lawsuit as the defendant. The lawsuit further noted that the two "went to great lengths to use their experience as investors" to fool millions of American investors.

Many cases included investors using their life savings to dive into the Voyager Digital crypto products. Over 3.5 million Americans have now lost more than $5 billion in cryptocurrency assets, according to the lawsuit.

It now seeks Ehrlich and Cuban, including his NBA team, to be responsible for paying the investors back.

The lawsuit stated that Voyager and its executives had shown false and "deceptive" deposit insurance claims, which had raised the confidence of investors in the product.

Crypto Ponzi Scheme Lawsuit

The Mavericks team was involved in the lawsuit after it entered a five-year partnership with Voyager in 2021, marking the team's first cryptocurrency brokerage and international partner.

Adam Moskowitz, who is managing partner of Moskowitz Law Firm, said that their firm has heard hundreds of Voyagers investors who dived in after seeing Cuban promote it. Moskowitz added that some investors lost hundreds of thousands of dollars, as reported by Dallas News.

Moskowitz said that Cuban claimed he did an investigation on Voyager and found that it was a safe investment.

The law firm partner added that their experts were saying it was a scam, questioning how Cuban led to that conclusion.

Moskowitz said that "something was very strange."

Cuban claimed that he personally invested in Voyager, according to the lawsuit. However, Moskowitz said that he had not seen any documentation that Cuban lost any money because of his investment.

Mark Cuban Promoting Voyager Investments

Dallas Mavericks and Voyager had a promotion wherein fans could receive $100 in Bitcoin if they deposited $100 of their own money into the crypto app.

Business Insider reported Cuban said at the time that they are working with Voyager and that they are "going to be at the forefront of innovation."

Voyager filed for bankruptcy in early July after the company had a crash in cryptocurrency prices, which led to the insolvency of multiple billion-dollar crypto companies.

Cuban said on the "The Problem With Jon Stewart" podcast that aside from his Shark Tank investments, 80% of investments are placed in or around crypto. He added that he is "still bullish on crypto," noting that "everyone took a hit on crypto."

The lawsuit's plaintiffs, Cuban and Voyager, have yet to comment on the matter.

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Written by: Mary Webber

WATCH: Mark Cuban sued for promoting Voyager crypto products - from Yahoo Finance