Attorneys for Voyager Digital have asked the bankruptcy court to halt an investors’ lawsuit. The suit is against company founder and CEO Stephen Ehrlich and Dallas Mavericks owner Mark Cuban.
Voyager, more than $ 5 billion lost ?
The American platform Voyager Digital had declared bankruptcy last July, following the collapse of Three Arrows Capital (3AC).
As a reminder, when Three Arrows Capital defaulted, it put the exchange platform Voyager Digital in deep trouble, forcing it to pause its services and eventually declare bankruptcy. This was the wider repercussions of the Terra (LUNA) affair, which created a tidal wave within the ecosystem in recent months.
And the wave has come to hit Mark Cuban, who is being sued for his connection to Voyager Digital. A complaint has been filed in the Southern District of Florida court. The twelve plaintiffs accuse the billionaire and Voyager Digital CEO Steve Ehrlich of misleading investors.
According to the document, they are 3.5 million Americans who would have lost more than $ 5 billion in cryptocurrencies.
In addition, they allege that Mark Cuban made false statements against plaintiffs regarding undisclosed commissions for crypto transactions made on Voyager. The lender’s insured status with the Federal Reserve and FDIC is also in dispute, according to court documents. Cuban further appeared to strongly endorse and support his company’s partnership with the alleged Voyager.
The plaintiffs went on to note that he proudly described how “he would personally help those with limited funds and experience to significantly increase the reach and scope of the Deceptive Voyager platform.”
Voyager argued that Ehrlich and Cuban are not involved in?
Voyager is asking the court to dismiss the investors’ lawsuits against its founder and Mark Cuban.
According to the report, lawyers argued that Ehrlich and Cuban are involved in a similar lawsuit filed by the same group of plaintiffs against Voyager itself. Notably, the bankruptcy filing ends many lawsuits, including debt collection lawsuits.
However, this does not apply to third parties, including company officials. Nevertheless, a bankruptcy judge may agree to extend temporary protection to others involved in the business.
The FDIC and Federal Reserve Board recently ordered Voyager to stop making false and misleading statements. This relates to its FDIC deposit insurance status on its various accounts.