Mark Cuban is being sued for an investment he describes as “as risk-free as you’re going to get in cryptocurrency just before it all fell.”
I’m not saying it’s completely risk-free, but it’s as near as you’re going to get in the crypto realm. Create an account using the promotional discount code MAVs 100. That didn’t work out so well.
Marc Cuban downplayed the risks
In the realm of cryptocurrency, the virtually risk-free firm Voyager filed bankruptcy and froze everyone’s money for agony. Just days after the broker banned withdrawals from the site, Voyager Digital files for Chapter 11 bankruptcy protection.
Now, I published a few months back on how Voyager disguised itself as a low-risk company and utilized deceptive marketing to make really stupid lending decisions that some would call doing 2008.
As a result, a class action lawsuit has been launched against Voyager and Mark Cuban.
So we’re going to look into this case today to see what’s going on.
Who sues Marc Cuban?
The first thing you should know about the story is that it is the second class action lawsuit filed against Voyager.
The major accusation in this complaint is that Voyager is lying, which is akin to charging Ezra Miller of a criminal.
It’s as predictable as the dawn, yet plaintiffs accused Voyager of lying about their boasts of 100% commission-free trading. Voyager promised that there are no costs for purchasing Bitcoin or Aetherium.
Which sounds extremely appealing until you consider that Voyager earns millions of dollars in revenue while having no costs.
It finds inefficiencies in the crypto market, which it then utilizes to quote, get you a better price on your transactions, which means that Voyager only makes money when you save money, according to Voyager.
Voyager allegedly charges the biggest premium on transactions among all rivals.
How are Cuban and Voyager connected?
On all but one case, voyagers’ prices were lower than the exchange to which they were compared.
So the only person for whom this smart order router was operating was Voyager.
In retrospect, it’s not unexpected that Voyager was profiting from trading fees, but what is shocking is how blatant they were about lying about it.
Voyager frequently claimed things like providing you the best Bitcoin for your money and reviewing numerous exchanges for price, but this is reportedly incorrect.
People did not die, but they did pay millions more than they had to.
Their lending crew played like degenerates on Wall Street bets, losing everyone’s money on high-risk loans.
The second case, filed by our boy, Mark Cuban, effectively states, “Hey, people lost millions, if not billions of dollars because you stated this was very close to risk-free, and it plainly wasn’t.”
While there are many similarities between this complaint and the first, there are a few new points to discuss.
The other major point in this case is that it accuses Cuban and Steven of conducting a Ponzi scheme, in which they maintained bringing in new people to pay for the old ones until it all crumbled.
What I do know is that Voyager undoubtedly deceived individuals while pretending to be honest and looking out for the consumer, which is about as bad as it gets in my opinion.
Transparency is really what leads us to be trying to build, you know, the next generation of financial services company, you is by being transparent about it, I’m sure some of the things that they’re talking about might have gotten caught earlier if it was credit, if it was quarterly financials, you know, some of the things that they’re talking about might have gotten caught earlier.
The irony is that Cuban is always peddling the same garbage that he’s yelling about, like, on the one side, he’ll label Metaverse real estate the stupidest ever, which, to be honest, may be true.
Why fill out all that tedious paperwork at a bank when you can lose all your money instead for a wonderful lesson in personal finance? Of course, if the fans win this case, it will be a lesson in personal finance that Mark Cuban will never forget.