In a significant legal development closing a chapter on allegations tied to cryptocurrency promotion, entrepreneur Mark Cuban and his NBA team, the Dallas Mavericks, have been cleared of fraud accusations related to their endorsement of Voyager Digital. The United States District Court for the Southern District of Florida dismissed the lawsuit just before the new year, citing a failure on the part of the plaintiffs to establish personal jurisdiction.
The litigation had centered on claims that Cuban and the Mavericks misled investors through their promotional activities involving Voyager Digital, a cryptocurrency lending firm that filed for bankruptcy in 2022. Initiated under multiple state securities regulations and consumer fraud statutes, the suit accused the defendants of participating in investor deception during their sponsorship agreement with Voyager.
Presiding Judge Roy K. Altman ruled in a filing dated December 30 that the plaintiffs did not adequately demonstrate that the court had jurisdiction over Cuban and the Mavericks in this matter. As a consequence, the case was dismissed in its entirety. Furthermore, the judgment explicitly precludes the plaintiffs from refiling the suit in the same federal district court, effectively foreclosing further litigation on these claims in that jurisdiction.
The dismissal comes amidst broader legal and financial fallout resulting from Voyager Digital's collapse. The company had encountered a liquidity crisis that led to an enforcement action against its CEO, Stephen Ehrlich, prior to its bankruptcy filing. Investors affected by the downturn sought legal recourse not only against Cuban and the Mavericks but also targeted the National Basketball Association itself, alleging losses totaling approximately $4.2 billion tied to Voyager partnerships.
Specifically, the claims against Cuban included allegations that the Mavericks’ sponsorship deal with Voyager constituted an endorsement of "an unregistered and unsustainable fraud." Despite the serious accusations, Cuban has since reduced his ownership stake in the Mavericks, selling a majority portion in 2023 and retaining a 27% share of the team.
This legal outcome underscores ongoing challenges at the intersection of high-profile celebrity involvement and the volatile cryptocurrency sector, particularly when ventures abruptly fail, triggering investor losses and litigation. The dismissal on procedural grounds rather than substantive findings leaves open broader questions about investor protections and promotional responsibilities in emerging financial markets.