Florida Court Strikes Down Crypto Lawsuit Against Cuban and Mavericks Over Voyager Partnership

A federal judge in Florida has dismissed a class-action crypto lawsuit targeting billionaire Mark Cuban and the Dallas Mavericks. The ruling, handed down by Judge Roy Altman in late December, centered on a critical procedural issue: whether the court had legal authority to hear the case in Florida.

Former Voyager Digital investors had brought the crypto lawsuit claiming that Cuban and the Mavericks misrepresented the safety of Voyager’s investment products through a 2021 promotional partnership. However, the court determined that plaintiffs failed to establish personal jurisdiction—meaning the defendants had no sufficient legal connection to Florida to be sued there.

Lack of Jurisdiction Ends Case for Voyager Investors

Judge Altman’s decision hinged on a straightforward finding: Cuban and the Mavericks did not conduct business in Florida or specifically target Florida residents in their promotional activities. The judge wrote that “Plaintiffs fail to establish that the Defendants carried on a business or business venture in Florida.”

The court noted that simply owning property in the state or visiting Florida did not create the necessary legal connection required for jurisdiction. More importantly, the judge found no evidence that marketing materials related to Voyager were specifically aimed at people in Florida. This lack of targeted outreach proved fatal to the case’s survival in this particular judicial district.

The ruling suggests that a different jurisdiction might have been more appropriate for such a lawsuit. Notably, the judge indicated that if Voyager itself had been named as a defendant, the jurisdictional analysis might have differed. Since only Cuban and the Mavericks were listed as defendants, however, the dismissal stood.

Mavericks’ Promotional Partnership and the Missing Link

The crypto lawsuit originated from Voyager Digital’s partnership with the Dallas Mavericks, announced in 2021. The five-year promotional agreement became central to investor claims that they were misled about the risks inherent in cryptocurrency investing through Voyager’s platform.

Plaintiffs alleged that the high-profile endorsement from a major NBA team downplayed the volatility and risks associated with crypto assets. The celebrity association with Cuban and an established sports franchise, they argued, created a false sense of security. Yet the court found that these promotional activities did not create a sufficient nexus with Florida to allow the case to proceed there.

This ruling underscores a challenge facing many defrauded crypto investors: establishing where legal action can be taken and against whom. The plaintiffs may still pursue remedies in other jurisdictions, but the Florida court’s decision closes one avenue.

The Broader Crypto Collapse and Endorsement Accountability

The Voyager crisis formed part of a larger industry meltdown in 2022. When cryptocurrency values plummeted, Voyager Digital filed for Chapter 11 bankruptcy in August 2022. The platform froze customer assets, and investors lost significant sums.

That same year witnessed the collapse of several other major crypto firms. FTX’s dramatic downfall and Celsius Network’s bankruptcy punctuated a year of widespread failures across the sector. The Terra blockchain ecosystem’s implosion, linked to Do Kwon and Terraform Labs, resulted in massive losses. Do Kwon was subsequently sentenced to 15 years in prison for fraud-related charges.

In this environment, investors increasingly targeted celebrity endorsers and associated companies for legal action. The theory was that high-profile backing influenced their investment decisions. However, courts have proved hesitant to extend legal liability in crypto lawsuit situations where jurisdictional boundaries become unclear or promotional activities did not specifically target a particular state’s residents.

What’s Next for Voyager Plaintiffs

The Moskowitz Law Firm, representing the plaintiffs, has not yet publicly commented on the dismissal. The legal team may explore refiling the crypto lawsuit in other jurisdictions where a stronger case for jurisdiction exists.

Mark Cuban has not issued any public statement regarding the ruling. The Mavericks organization similarly remains silent. For now, the dismissal stands as a significant setback for investors seeking to hold celebrity promoters and sports organizations accountable for cryptocurrency losses suffered during the 2022 downturn.