Mark Cuban to be impeached for promoting bankrupt crypto lender Voyager

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US billionaire Mark Cuban has been ordered to testify in court next month in an ongoing lawsuit against him by disgruntled clients of bankrupt crypto lender Voyager, who allege Cuba misrepresented the company in Promotional material.

Filed in U.S. District Court in South Florida in August, the lawsuit describes Voyager as a massive Ponzi scheme and highlights Cubans’ aggressive promotion among crypto newbies and inexperienced retail investors, which Voyager and its promoters would have targeted.

In yesterday’s court order, US Magistrate Judge Lisette M. Reid denied the Cubans’ request to split the deposition into two hearings. Instead, the Cubans’ full deposition will be taken in a single session on February 2 this year.

Two Dallas Mavericks employees will also be deposed by Feb. 23, and three plaintiffs will deliver depositions later this month.

Cuban made several statements that appear to have infuriated Voyager investors, including that the lender was as close to risk-free as you would get in the crypto space.

Additionally, the lawsuit alleges that Voyager presented itself as a fully compliant and licensed crypto broker despite not being registered with the United States Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC) or necessary federal or state regulators involved in overseeing the sale of securities.

The Collapse of Voyager

Following the collapse of Terras, Voyager was one of many lenders that were hit by subsequent cash flow issues, which ultimately led to the company filing for Chapter 11 bankruptcy in July last year. .

Then, at the end of the third quarter of 2022, FTX.US won the bid to take over Voyagers’ remaining assets for $1.4 billion. The deal fell through after FTX’s dramatic collapse a fortnight later.

Voyager reopened the bidding process in November. This time, Binance.US emerged as the best and highest bid with just over $1 billion.

Last week, former crypto hedge fund Alameda, FTX’s now-defunct sister company, called Binance.US’ takeover bid demonstrably unconfirmable and said the deal ignores fundamental requirements and the protections of the Bankruptcy Code in a legal case.

Voyager called Alameda’s response hypocrisy and chutzpah at its best, and accused the company of defrauding its creditors and most of the world.

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