Mark Cuban bankrupted by Crypto Lender Voyager
Mark Cuban is in trouble.
The billionaire contractor has for several days met a stream of criticism related to a partnership entered into with a crypto company. In fact, Cuban, an evangelist from the crypto industry he has invested in, had signed an agreement linking his NBA team, the Dallas Mavericks, to crypto lender Voyager Digital in October last year.
The contract, signed on October 28, is for five years and has the mission of promoting cryptocurrencies by making coins more accessible through educational and digital programs.
$ 100 reward when you open an account
As part of the partnership, Voyager Dallas promised the Mavericks’ fans a $ 100 reward for trading crypto on Voyager for a limited time if they deposited $ 100 and traded for only $ 10. The offer had been very successful, so much so that Voyager had to set up a waiting list.
“We are going to come up with new ways to introduce Mavs fans to cryptocurrency and help them understand it,” Cuban said at the time during a news conference with Voyager CEO Steve Ehrlich. “You know, there’s a lot of hype, there’s a lot of discussion, but most people do not understand the basics behind it. We’re going to try to bring that level of education to our fans and to our common customers.”
The problem is that less than nine months later, Voyager Digital filed for bankruptcy. And at the moment it is difficult to know if his customers will get their money back. In fact, the company is one of the security victims of the confidence crisis after wiping out more than $ 2 trillion from the crypto market since all-time highs were set in November.
Dallas Mavericks
Voyager is a cryptocurrency trading platform. The company also offers loans and wagering services, which are a kind of reward for holding certain coins. It was the lending business that got it in trouble: Voyager seems to have lent its customers’ funds to the crypto hedge fund Three Arrows Capital, also known as 3AC. However, last month, this fund defaulted on a $ 667 million loan given to it by Voyager. Three Arrows Capital has been forced by a court in the British Virgin Islands to go into liquidation. Faced with this disaster, Voyager suspended deposits, withdrawals and loyalty rewards on its platform.
“Customers with crypto on account (s) will receive in exchange a combination of crypto on account (s), revenue from the 3AC recovery, common shares in the newly reorganized company and Voyager tokens,” Ehrlich wrote on Twitter. July 6.
Voyager “is a great way to learn”
On October 28, Voyager Digital shares closed at $ 14.21. In its last session this week before delisting at the company’s request, the Voyager share traded at 25 cents per share.
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“You spend your money, so always be careful,” Cuban said at a news conference in October last year when asked what you need to know before making your first investment in the crypto sector. “But the other thing, look, it’s investment, stuff like Shiba Inu and Dogecoin, it’s not investment. But Voyager … this is a great way to learn and it’s something you can do on your smartphone. You can start getting into this and save your money, and it’s just a unique opportunity. “
Shiba Inu and Dogecoin are two meme coins that were made as a joke.
Cuban’s words and this partnership are now coming back to haunt him because many retail investors claim to have invested in Voyager or to have gone through the platform for their first investments in the crypto sector after the partnership with the Dallas Mavericks. These investors express their anger on social media.
“So we got tough on @mcuban twice?” posted a Twitter user.
“@mcuban @costplusdrugs Do not trust Cuban. I lost everything in his” partnership “with Voyager,” complained another user. “He says he’s not in it for the money and only charges 10-15% for costs. There are 9 figures for every billion. There is no one who’s not in the money! ‘I’m devastated by him.”
“@mcuban I made sure to mention that you suggested I use @investvoyager for my crypto exchange. 👍” complained another user.
“@mcuban is full of blankets 👀,” said another.
Cuban, who has a presence on social media and has retweeted messages from users praising his efforts to reduce drug costs, has not yet discussed Voyager’s bankruptcy.
A Twitter request for comment from the Dallas Mavericks has so far not been answered.
“In stocks and cryptocurrencies, you will see companies that were maintained by cheap, easy money – but that did not have valid business prospects – disappear,” Cuban said in an interview with Fortune last month. “As [Warren] Buffett says, “When the tide goes out, you get to see who swims naked.”
