Bitcoin Promo Lawsuit vs Cuban and Mavericks Dismissed on Jurisdiction Grounds

Source: Cryptonews Original Title: Bitcoin promo lawsuit vs Cuban, Mavericks tossed on jurisdiction grounds Original Link: https://crypto.news/bitcoin-promo-lawsuit-vs-cuban-mavericks-tossed-on-jurisdiction-grounds/

Summary

• Class-action suit over Voyager promotions dismissed for lack of Florida jurisdiction.
• Judge ruled that national marketing, press events, and app promotion did not specifically target Florida residents.
• Plaintiffs can refile in another jurisdiction as Voyager’s 2022 collapse continues to spawn litigation.

Case Details

A U.S. federal judge dismissed a cryptocurrency investor lawsuit against Mark Cuban and the Dallas Mavericks on Friday, ruling that plaintiffs failed to establish personal jurisdiction over the defendants in Florida.

Judge Roy K. Altman of the U.S. District Court for the Southern District of Florida determined that insufficient legal connection existed between Florida and the alleged promotional activity to justify hearing the case.

The lawsuit, filed in 2022, alleged that Cuban and the Mavericks used their public platform to promote Voyager Digital’s products, contributing to investor losses after the crypto lender’s bankruptcy. The case was part of broader litigation targeting celebrities, athletes and sports teams accused of promoting crypto platforms that subsequently collapsed.

Jurisdictional Ruling

The ruling focused on jurisdictional limits rather than assessing whether the promotions were misleading or improper. The court found that nationwide or online promotions do not automatically constitute purposeful targeting of Florida residents under the state’s long-arm statute or constitutional due-process standards.

The judge dismissed the case without prejudice, allowing plaintiffs the possibility of refiling claims in another jurisdiction.

Evidence Presented

Plaintiffs cited remarks Cuban made at an October 2021 Mavericks news conference in which he stated he had personally invested in Voyager. The complaint also referenced a Mavericks promotion offering $100 in Bitcoin to customers who downloaded the Voyager app, opened an account, deposited $100 and completed a trade.

Cuban’s legal team argued that neither Cuban nor the Mavericks specifically targeted Florida residents and that Cuban had repeatedly cautioned people to exercise care with their money when discussing crypto investments publicly.

Defense Statement

The defense team stated that the dismissal followed years of litigation and jurisdictional discovery. The court rejected the notion that broad national marketing campaigns alone can establish jurisdiction in any state where an investor claims harm.

“The defense is prepared to contest the claims wherever they are brought,” according to legal filings. Cuban’s position remains that broad national marketing campaigns cannot automatically establish jurisdiction in any state claiming harm.

Voyager Background

Voyager filed for Chapter 11 bankruptcy protection in July 2022 following market losses and counterparty failures. The company reportedly held more than $5 billion in assets and served nearly 3.5 million customers at its peak in 2021.

The collapse triggered multiple lawsuits against executives, partners and promoters as investors sought to test legal boundaries of crypto marketing and celebrity endorsements.

Ownership Changes

Cuban sold his majority stake in the Mavericks to casino magnate Miriam Adelson in late 2023, though he retained a minority interest and continued involvement in basketball operations.