Judge Dismisses Voyager Crypto Lawsuit Against Cuban and Mavericks

TLDR

• The lawsuit was dismissed for lack of personal jurisdiction in Florida.
• Plaintiffs sued over Voyager’s 2021 partnership with the Mavericks.
• The judge said Cuban and the Mavericks did not target Florida residents.
• Voyager filed for bankruptcy in August 2022 after market downturns.

A federal judge in Florida has dismissed a class-action lawsuit against billionaire Mark Cuban and the Dallas Mavericks. The lawsuit was filed by former Voyager Digital investors who claimed Cuban and the Mavericks misrepresented the safety of Voyager’s crypto products. However, the court found the plaintiffs failed to establish personal jurisdiction over the defendants in the state of Florida.

The lawsuit followed Voyager Digital’s bankruptcy in August 2022. The plaintiffs alleged deceptive conduct and false claims related to a 2021 partnership between the Mavericks and Voyager. The case, filed in the U.S. District Court for the Southern District of Florida, was dismissed by Judge Roy Altman in late December.

Court Finds No Jurisdiction in Florida

Judge Altman ruled that the plaintiffs did not show that Cuban or the Mavericks did business in Florida or targeted Florida residents. The court noted that owning property or visiting the state did not prove the required legal connection.

“Plaintiffs fail to establish that the Defendants carried on a business or business venture in Florida,” the judge wrote. The court also found no evidence that marketing or promotions related to Voyager were specifically aimed at people in Florida.

The court said that a different jurisdiction might have been more appropriate. It added that if Voyager itself were a defendant, then a theory of conspiracy jurisdiction might apply. But since the lawsuit named only Cuban and the Mavericks, the case was dismissed.

Voyager’s Collapse and Lawsuit Origins

Voyager Digital filed for bankruptcy in August 2022, during a period of falling crypto values. That year, several other crypto firms also collapsed, including FTX and Celsius Network. The Voyager platform froze customer assets and eventually filed for Chapter 11 protection.

The class-action lawsuit alleged that Cuban and the Mavericks misrepresented Voyager’s services. It referred to a five-year promotional partnership between the Mavericks and Voyager, announced in 2021. Plaintiffs said this agreement misled consumers by downplaying the risks of investing in crypto through the platform.

The judge’s ruling stated that these claims were not enough to support jurisdiction in Florida. The plaintiffs were unable to show a direct link between the promotional activities and harm suffered by Florida residents.

Response from Plaintiffs’ Legal Team Awaited

Cointelegraph reported that it contacted the Moskowitz Law Firm, which is representing the plaintiffs, for comment on the dismissal. As of publication, the firm had not responded.

The lawsuit forms part of a broader series of legal actions following the collapse of several major crypto companies in 2022. Investors across the U.S. have sought legal remedies for losses related to promotions by celebrities and companies.

Mark Cuban has not publicly commented on the dismissal. The Mavericks have also not issued a statement. The judge’s decision ends the case unless the plaintiffs choose to refile in another jurisdiction.

Voyager’s Bankruptcy and Industry Fallout

The Voyager case was linked to broader failures in the crypto sector in 2022. The collapse of the Terra blockchain ecosystem, involving Do Kwon and Terraform Labs, led to widespread losses. Do Kwon has since been sentenced to 15 years in prison for fraud-related charges.

The downturn affected multiple platforms that were exposed to high-risk assets or leveraged positions. Voyager was one of several firms that paused withdrawals before declaring bankruptcy.

Investors in the Voyager case claimed that public endorsements like those from Cuban and the Mavericks influenced their decisions. However, the court ruled that those endorsements did not create a legal basis for a case in Florida.

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