Mark Cuban settles lawsuit for promoting Voyager Digital

Source: PortaldoBitcoin Original Title: Mark Cuban avoids lawsuit for promoting controversial cryptocurrency company Original Link: https://portaldobitcoin.uol.com.br/mark-cuban-se-livra-de-processo-por-ter-promovido-controversa-empresa-de-criptomoedas/ Billionaire Mark Cuban has successfully avoided a class-action lawsuit accusing him of misleading investors by promoting Voyager Digital, a cryptocurrency lending company that went bankrupt in 2022. The lawsuit also involved the Dallas Mavericks, the NBA franchise owned by Cuban.

The lawsuit alleged that Mark Cuban and the basketball team violated securities laws and consumer protection regulations by promoting Voyager’s platform as a safe investment. In a decision issued on December 30, Judge Roy K. Altman of the U.S. District Court for the Southern District of Florida fully dismissed the case, preventing the plaintiffs from re-filing the complaint.

“Mr. Cuban and the Dallas Mavericks are extremely pleased with this decision,” said Steve Best, a partner at Brown Rudnick representing the businessman. According to Cuban’s defense, the judge concluded that the plaintiffs lacked sufficient legal grounds to support the allegations.

The lawsuit claimed that Mark Cuban repeatedly misrepresented information about Voyager before the company filed for Chapter 11 bankruptcy in July 2022. At the time of bankruptcy, the platform held approximately US$1.3 billion in customer cryptocurrencies.

Voyager’s collapse occurred amid a broader cryptocurrency market crisis triggered by the collapse of the Terra (LUNA) ecosystem, which wiped out roughly US$40 billion in market value — culminating in the conviction of project creator Do Kwon to 15 years in prison in the U.S.

This domino effect impacted several companies in the sector and marked one of the most turbulent periods in recent cryptocurrency history.