Voyager Digital’s lawyers have filed a bankruptcy court request to dismiss a lawsuit filed by investors against the company’s co-founder.
In early July, cryptocurrency lender Voyager Digital filed for bankruptcy due to prolonged market volatility and the default of Three Arrows Capital (TAC). As lawyers noted, litigation against companies in a state of bankruptcy is automatically suspended, this also includes claims for debt collection. However, this does not apply to third parties and company executives. Therefore, bankruptcy judges may decide on temporary relief for persons associated with the company.
Voyager Digital’s legal advisors mentioned a class action lawsuit involving American billionaire and owner of the Dallas Mavericks basketball club Mark Cuban. The plaintiffs accused him of collaborating with Voyager Digital. They allege that Cuban encouraged young fans with no experience in investing to invest their savings in Voyager Digital. According to the plaintiffs, the billionaire misled them by not disclosing information about the commissions for cryptocurrency transactions made on the platform.
In addition, the lawsuit against Voyager Digital challenges the status of a lender protected by the US Federal Deposit Insurance Corporation (FDIC). In July, the FDIC and the US Federal Reserve Board (FRS) published a joint
Press releasewhich demanded that Voyager stop making false claims on social media about the status of deposit insurance.
Recently, Mark Cuban criticized US regulators for the lack of rules for regulating cryptocurrencies. He believes that clear regulations would help to avoid many of the problems in the industry and would significantly reduce the number of lawsuits against cryptocurrency companies.
Source: Bits
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