Key Takeaways:
- GRYC sues crypto broker Voyager alleging hidden fees and misleading marketing practices.
- 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 on Dec. 24, 2021.
- According to expert preliminary analyses cited in the case text, the litigation could result in Voyager users receiving more than $1 billion in compensation.
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 on Dec. 24, 2021.
According to expert preliminary analyses cited in the case text, the litigation could result in Voyager users receiving more than $1 billion in compensation. Mr Cassidy told Bloomberg that after the Securities and Exchange Commission (SEC) accused Robinhood of predatory trading practices, he was one of many crypto investors who switched to Voyager. Voyager attracted many platform users with its “100% commission-free” policy. However, Mr Cassidy soon began to suspect Voyager had its own shady practices when he noticed its wide bid-ask spreads.
The difference between the highest bid a buyer is willing to offer and the lowest bid a seller is willing to accept is the big-ask spread. The wide bid-ask spreads on Voyager appeared to be a sure sign of hidden fees. Mr Cassidy determined that his suspicions were correct and sought professional legal assistance from Grossman Roth Yaffa Cohen after an investigation.
Voyager’s wide big-ask spreads seemed a sure sign of hidden fees. Upon investigation, Mr Cassidy determined his suspicions had weighed and reached out to Grossman Roth Yaffa Cohen for professional legal help. Mr Cassidy told reporters for Bloomberg that “They’re basically ripping people off small pieces at a time”.
The class-action lawsuit also claims that Voyager takes advantage of “their customers’ naivete,” alleging that the crypto broker specifically targets “unsophisticated investors with false and misleading promises of large profits in the cryptocurrency market.”
Grossman says that,
“The investing world is depending upon cryptocurrency brokers to be governed and self-governed as would become the best traditional investment brokers and their firms”. However, just because crypto is its own universe and not easily understood does not make it a playground for taking advantage of its investor’s trust and money.”
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. However, 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 serves as liaison counsel in the January 2021 Short Squeeze Trading Litigation against Robinhood, TD, Ameritrade, and over 30 other companies.
