A federal judge dismissed a class action lawsuit against Mark Cuban and the Dallas Mavericks on December 30 over allegations they defrauded investors by promoting now-bankrupt cryptocurrency lender Voyager Digital.
U.S. District Judge Roy K. Altman for the Southern District of Florida ruled the court lacked personal jurisdiction over the defendants.
The case was dismissed without prejudice after three years of litigation and multiple amended complaints.
Former Voyager customers filed the lawsuit alleging Cuban and the Mavericks violated state securities laws and consumer fraud statutes.
What Happened
The plaintiffs claimed Cuban misrepresented Voyager at an October 2021 news conference where he stated he personally invested in the company.
The Mavericks subsequently tweeted promotional offers including $100 in free Bitcoin for new users who met certain trading requirements.
Judge Altman determined the defendants' national advertising and sponsorship activities proved insufficient to establish jurisdiction under Florida's long-arm statute.
Former NFL player Rob Gronkowski, ex-NBA player Victor Oladipo and NASCAR driver Landon Cassill previously settled similar claims for a combined $2.4 million.
Voyager filed for Chapter 11 bankruptcy in July 2022 with approximately $1.3 billion in crypto assets on its platform.
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Why It Matters
The dismissal represents a significant legal victory for high-profile cryptocurrency promoters facing investor lawsuits following platform failures.
Voyager's collapse occurred during broader 2022 market turmoil triggered by the Terra blockchain implosion.
Terraform Labs founder Do Kwon received a 15-year prison sentence on December 11 for fraud related to Terra's $40 billion collapse.
The case joins similar celebrity endorsement lawsuits filed against promoters of bankrupt platforms including FTX.
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