Voyager Digital investors have appealed the dismissal of their lawsuit against Mark Cuban and the Dallas Mavericks to the U.S. Court of Appeals for the Eleventh Circuit, according to The Block.
The case hinges on whether Cuban and the NBA team bear liability for promoting Voyager without adequate disclosure of financial relationships. Voyager collapsed in July 2022 after Three Arrows Capital defaulted on loans, triggering a cascading failure that left creditors billions of dollars short. Investors sued, alleging that high-profile endorsements masked the exchange's fragility and enticed them to deposit funds.
A federal judge in Florida dismissed the claims in an earlier ruling, finding that promotional activity alone does not establish liability under securities law. Cuban and the Mavericks had argued they made no material misrepresentations and had no duty to disclose relationships beyond what was legally required.
The appeal will test whether courts should impose a higher bar for celebrity and corporate endorsements in crypto. The Eleventh Circuit's decision could ripple across the industry, where influencers and sports figures routinely promote platforms without exhaustive conflict disclosures. That ambiguity has frustrated plaintiffs' lawyers, who argue that consumers deserve clarity on who benefits financially from an endorsement.
Voyager's bankruptcy estate itself collected proceeds from a sale to Ant Group's crypto arm, Aptos, for $1.4 billion in 2023. Creditors recovered roughly 36 percent of their claims through the deal, though many want additional compensation from promotional partners they say accelerated the platform's downfall.
The appeal gives Cuban and the Mavericks a chance to defend their conduct before a three-judge panel. If they prevail, the dismissal stands and the case closes. If they lose, the matter returns to the district court for further proceedings or possible summary judgment motion.
Neither Cuban, the Mavericks, nor Voyager creditors' counsel responded to requests for comment.