Voyager Digital Asks Court to Dismiss Investor Complaint Against Stephen Erlich and Mark Cuban

Crypto-currency lending platform Voyager Digital has asked the court to dismiss a complaint filed by a group of investors against its CEO Stephen Erlich and Dallas Mavericks owner Mark Cuban. The two men were sued earlier this month as they were accused of preying on inexperienced investors through promotional activities that enticed them to invest in Voyager’s products before its bankruptcy.

Voyager Digital wants court to end lawsuit

Attorneys for Voyager Digital have argued that with a bankruptcy filing, the company is protected from temporary lawsuits and believe that immunity should extend to key figures in the company. Because the lawsuits against Erlich and Cuban are related, the company wants the court to dismiss the case.

Voyager Digital was once a high-flying crypto investment and lending platform, and on more than one occasion, the company’s products were promoted by the Dallas Mavericks’ boss.

“I should add that I am a Voyager customer and have been for several months now. I love using it, it’s easy, it’s cheap, it’s fast, and the price is really good, so we find it to be a perfect solution for our Mavs fans and reaching Mavs fans of all ages,” Mark Cuban said in the complaint filed against the duo.

An excerpt from the lawsuit also reveals that the accused business leaders went to great lengths to “deceive millions of Americans into investing – in many cases, their life savings – in the deceptive Voyager platform and purchasing Voyager Earn Program (“EPA”) accounts, which are unregistered securities“.

In the lawsuit, it was alleged that Mark Cuban knew that Voyager’s products were a scam, yet he encouraged investors to invest in the platform. Following the bankruptcy, there is a good chance that investors in the crypto lender will not be able to recover 100% of their frozen assets.

The road to recovery

Voyager Digital’s bankruptcy hearings are underway, and while the company is open to a variety of viable solutions to get back on its feet, there are factors that are currently a major bottleneck.

The recovery of the Three Arrows Capital (3AC) loan remains one of the major factors that will determine how quickly and how well Voyager Digital’s current creditors will ultimately laugh. In the wake of the general turmoil that has swept through the entire digital currency ecosystem, Voyager Digital has issued a notice of default on a $650 million loan to Three Arrows Capital (3AC).

3AC is itself the subject of liquidation proceedings ordered by a court in the British Virgin Islands. Three Arrows Capital is also the subject of bankruptcy proceedings in the United States, and recovery of the defaulted funds owed to Voyager Digital will have to await the completion of those hearings.

It is not known what the court’s decision will be on the request to drop the lawsuits against Erlich and Cuban, but the company is doing everything it can to alleviate its legal difficulties in all areas.