Crypto Lawsuit Against Cuban and Mavericks Dismissed Over Jurisdiction Questions

A federal court has rejected a class-action lawsuit targeting Mark Cuban and the Dallas Mavericks, stemming from claims related to failed crypto platform Voyager Digital. The U.S. District Court for the Southern District of Florida threw out the case in late December, with Judge Roy Altman ruling that plaintiffs failed to establish legal jurisdiction in the state. This dismissal has significant implications for crypto investors seeking legal remedies after the industry’s major collapses.

The 2022 Crypto Crisis Context

To understand this case, it’s essential to grasp the crypto landscape of 2022. That year witnessed unprecedented failures across the digital asset industry. Voyager Digital filed for Chapter 11 bankruptcy in August 2022 after the crypto market suffered severe downturns. The company wasn’t alone—platforms like FTX and Celsius Network collapsed during the same period, creating a cascade of investor losses throughout the crypto ecosystem.

The broader market context is critical: the Terra blockchain collapse involving Do Kwon and Terraform Labs led to widespread devastation. Do Kwon, the key figure behind Terra, has since received a 15-year prison sentence on fraud-related charges. These interconnected failures demonstrated how interconnected and vulnerable crypto platforms had become when exposed to high-risk assets and leveraged positions.

Voyager’s Partnership and Alleged Deception

The lawsuit originated from Voyager Digital’s 2021 promotional partnership with the Dallas Mavericks. Investors claimed that Cuban and the Mavericks made false and misleading statements about the safety of Voyager’s crypto products and services. The class-action plaintiffs alleged that this partnership—a five-year agreement announced in 2021—misrepresented the risks involved in investing through the platform.

The core allegation suggested that celebrity endorsements from Cuban and the Mavericks downplayed crypto investment risks, thereby deceiving consumers about Voyager’s actual risk profile. When Voyager subsequently froze customer assets and sought bankruptcy protection, investors felt they had been misled by what seemed like credible, high-profile backing.

Why the Court Rejected Florida Jurisdiction

Judge Altman’s decision centered on a fundamental legal principle: establishing personal jurisdiction. The plaintiffs bore the responsibility of proving that Cuban and the Mavericks conducted business in Florida or specifically targeted Florida residents through their marketing activities.

The court found insufficient evidence on both counts. Simply owning property or visiting Florida did not meet the legal threshold for jurisdiction. The judge wrote that “Plaintiffs fail to establish that the Defendants carried on a business or business venture in Florida.” Additionally, the court found no proof that promotional campaigns related to Voyager were deliberately aimed at Florida residents specifically.

Judge Altman noted that while a different jurisdiction might have been appropriate for this case, the named defendants—Cuban and the Mavericks alone—did not meet Florida’s jurisdictional requirements. The court suggested that if Voyager itself remained a defendant, a conspiracy theory might have supported jurisdiction, but this was not the case.

Implications for Crypto Investors Seeking Justice

The dismissal leaves open questions about where similar lawsuits might find more receptive jurisdictions. Former Voyager investors have pursued legal action, but this ruling demonstrates the procedural hurdles crypto litigation faces. The Moskowitz Law Firm, representing the plaintiffs, has not publicly commented on the decision as of the ruling date.

Mark Cuban and the Dallas Mavericks have remained silent following the dismissal. The case’s outcome reflects a broader challenge in crypto investor protection: even when celebrities or sports franchises endorse platforms that subsequently fail, establishing legal liability proves difficult.

This decision arrives as the crypto industry continues grappling with accountability questions following 2022’s major collapses. Investors across the United States have sought legal remedies for losses tied to celebrity endorsements and company partnerships. The Voyager case illustrates how crypto market participants face not only financial losses but also legal barriers when pursuing compensation claims. Unless plaintiffs choose to refile in another jurisdiction, this particular lawsuit effectively ends—a reminder that the crypto sector’s legal landscape remains complicated and jurisdiction-dependent.