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Highlights
- Voyager estimated that it had over 100,000 creditors.
- Mark Cuban was criticized for promoting the cryptocurrency brokerage firm.
- Mark Cuban-owned Dallas Mavericks had partnered with Voyager Digital in 2021.
Shark Tank celebrity and billionaire investor Mark Cuban drew ire from fans and investors after Voyager Digital Ltd. (TSX:VOYG) filed for bankruptcy.
Mr Cuban was criticized for promoting the company. After halting withdrawals, trading, and deposits to its platform for a week to investigate strategic alternatives, Voyager Digital announced on Tuesday that it has filed for bankruptcy.
Voyager estimated that it had over 100,000 creditors and crypto-assets worth between US$ 1 billion to US$ 10 billion when it filed for Chapter 11 bankruptcy.
The Chapter 11 bankruptcy processes halt all civil actions and permit businesses to continue operating while turnaround strategies are established.
The crypto market has recorded increased volatility since the start of 2022. The collapse of the virtual currency market could be attributed to the crash of the so-called stablecoin TerraUSD in May.
Why is Mark Cuban being criticized?
Fans and investors are criticizing Mark Cuban as Voyager Digital announced a partnership with his NBA team Dallas Mavericks last year. In October 2021, Voyager Digital announced a five-year partnership with the Mavericks.
Through educational and community initiatives, international activations, and fan engagement campaigns, Voyager and the Dallas Mavericks aimed to increase access to cryptocurrencies via the partnership agreement.
When announcing the deal, Mark Cuban said that his team was excited to welcome Voyager. Mr Cuban said that the applications and crypto-assets revolutionized business and personal finance.
Mr Cuban said he believed that Mavericks and NBA supporters would learn more about Voyager and how the platform may help them make more money than they could with conventional financial applications.
A Twitter user named Jim Rickards said that Mr Cuban has stated there is a lot of buzz around crypto, but most people don't grasp the basics. "I suppose Cuban also didn't. It is known as banking. Voyager is now insolvent," said Mr Rickards.
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Bottom line
The crypto market is volatile, and investors must remain cautious before investing money. In 2022, the market has crashed massively from US$ 2 trillion worth of market capitalization to less than US$ 1 trillion.
A lot of investors lost their money, and it is advisable to research and evaluate your options before buying any digital asset.
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