Lawsuit Against Mark Cuban and Mavericks Over Voyager Digital Promotion Dismissed by Court

A class-action lawsuit targeting Mark Cuban and the Dallas Mavericks franchise has been thrown out by the courts. The case alleged that Cuban’s public endorsements of the cryptocurrency lending platform Voyager Digital constituted fraud that caused investors significant losses. The court has now rejected these claims, effectively closing the litigation.

The legal action emerged from Voyager Digital’s collapse in 2022, when the platform filed for Chapter 11 bankruptcy protection. At that time, the platform held approximately $1.3 billion in cryptocurrency assets. Cuban had been accused of making multiple misleading statements about the company’s viability before its downfall, drawing the ire of affected investors who sought damages through the lawsuit.

Voyager’s bankruptcy was not an isolated incident but rather a domino effect triggered by broader market turmoil. The Terra blockchain’s dramatic failure served as the primary catalyst, erasing roughly $40 billion in market value across the ecosystem. This cascade of failures swept through the industry, exposing vulnerabilities in various crypto lending operations and custodial platforms.

The fallout from Terra’s collapse extended beyond financial losses. Do Kwon, the architect behind the Terra project, faced criminal consequences for his role in the debacle. Early this month, Kwon received a 15-year prison sentence, marking one of the most severe penalties handed down in cryptocurrency-related cases.

The dismissal of the lawsuit against Mark Cuban represents a legal conclusion to one chapter of the broader 2022 crypto winter narrative, though it does little to restore the capital lost by Voyager users during the platform’s implosion.