Lawsuit claims Mark Cuban and the Dallas Mavericks 'duped' customers into investing with the now-bankrupt crypto platform Voyager Digital, resulting in $5 billion in losses

Mark Cuban and the Dallas Mavericks are accused in a new lawsuit of duping investors into putting money into a Ponzi scheme.

According to the proposed class action suit, Cuban and the Dallas Mavericks NBA team, which Cuban owns, went to great lengths to deceive millions of Americans into investing in the now-bankruptcryptocurrencies platform.

The Mavericks and Voyager entered into a 5-year partnership last year and once ran a promotion where fans would receive $100 in Bitcoins if they deposited their own money.

Cuban said at the time that they were going to be at the forefront of innovation.

According to the lawsuit, 3.5 million Americans have lost more than $5 billion because of the false promises made by Cuban, Erlich, and the Mavericks. The suit wants them to pay the Americans back.

The case isn't certain to go to trial. A judge needs to certify that the representatives named in the lawsuit are representative of more than 3 million Americans, according to a partner at Morrison Cohen.

The one class action suit may not be suitable, according to a legal expert.

"US courts, particularly federal courts but also state courts, have gotten more skeptical over the years about the appropriateness of allowing essentially in a single action, representation of a very large number of people."

The company filed for Chapter 11 protection in July. The company got caught up in the crash of the price of cryptocurrencies, which led to the insolvency of many billion dollar companies.

The company was listed on the Toronto Stock Exchange until last month, when it decided to delist. All public companies have to comply with financial disclosure requirements.

Mark Cuban and the Dallas Mavericks didn't give a comment to Insider.

There has been a rise in the number of lawsuits related to cryptocurrencies.

Gottlieb says he's seen an increase in litigation related to the digital currency.

"Any regular-world company that suffers a lot of losses is likely to attract the attention of the attorneys who represent them." He said it was a "more money, more problems" situation.