MIAMI, Jan. 4, 2022 /PRNewswire/ — Grossman Roth Yaffa Cohen has announced a class action lawsuit against cryptocurrency broker Voyager Digital, alleging that it charges hidden fees and makes false promises to platform users. Partners Stuart Z. Grossman and Rachel Furst, along with Adam M. Moskowitz, managing partner at the Moskowitz Law Firm, filed the complaint on behalf of a Florida client, Mark Cassidy, in a Miami federal court Dec. 24, 2021.
According to expert preliminary analyses cited in the case text, litigation may result in over $1 billion in compensation for Voyager users.
As Mr. Cassidy told Bloomberg, he was one of the many crypto investors to switch to Voyager after the U.S. Securities and Exchange Commission (SEC) accused Robinhood of predatory trading practices. Voyager attracted many platform users with its “100% commission-free” policy. Mr. Cassidy soon began to suspect Voyager had its own shady practices when he noticed its wide bid-ask spreads, however.
A big-ask spread is defined as the difference between the highest bid a buyer is willing to offer and the lowest bid a seller is willing to accept. Voyager’s wide bid-ask spreads seemed a sure sign of hidden fees. Upon investigation, Mr. Cassidy determined his suspicions had weight and reached out to Grossman Roth Yaffa Cohen for professional legal help.
“They’re basically ripping people off small pieces at a time,” Mr. Cassidy told reporters for Bloomberg.
The class action suit further claimed that Voyager takes advantage of “their customers’ naivete.” In particular, it alleges that the crypto broker targets “unsophisticated investors with false and misleading promises of reaping large profits in the cryptocurrency market.”
“The investing world is depending upon cryptocurrency brokers to be governed and self-governed as would the best traditional investment brokers and their firms” Grossman says, “Just because crypto is its own universe and not easily understood does not make it a playground for taking advantage of its investors trust and money.”
For evidence, Grossman Roth Yaffa Cohen highlighted a press conference announcing a five-year partnership between the Dallas Mavericks and Voyager. Mark Cuban, owner of the Mavericks, and Steve Ehrlich, Voyager president and chief officer, touted how easy it was to make gains by investing in cryptocurrencies. They went so far as to aim their messaging at beginners with few resources.
Grossman Roth Yaffa Cohen is proud to stand up to Voyager over its misleading practices. Attorneys Grossman and Furst have years of experience with class action lawsuits filed against large companies and corporations. In fact, Attorney Furst is also serving as liaison counsel in the January 2021 Short Squeeze Trading Litigation against Robinhood, TD, Ameritrade, and over 30 other companies.
Founded in 1988, Grossman Roth Yaffa Cohen has recovered millions in compensation for its clients in South Florida and beyond. Learn more at https://www.grossmanroth.com/.
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