Crypto Exchange Gemini and Winklevoss Brothers Hit With Class Action Fraud Lawsuit Over Earn Product: Report

0

- Find Out More -

Crypto exchange Gemini is reportedly being hit with a class action lawsuit along with its founders for allegedly selling unregistered securities.

According to a new report from Bloomberg, Gemini, along with its founders, the Winklevoss brothers, are the target of a lawsuit claiming they sold interest-bearing accounts through the firm’s Earn program as unregistered securities.

Under the Earn program, Gemini partnered up with crypto lender Genesis to provide traders with up to 8% returns on their holdings. However, earlier this month Genesis announced that FTX’s collapse greatly affected its finances and it could longer pay out investors of Gemini’s Earn program.

Currently, Genesis owes Gemini about $900,000,000.

Gemini “refused to honor any further investor redemptions, effectively wiping out all investors who still had holdings in the program,” according to the report.

The plaintiffs say had the Earn products been properly registered, they would have gotten disclosures that would have let them accurately evaluate the risks associated with them.

The customers argue they were misled to believe that the Earn products were safe and that even though Gemini’s agreements state that Earn products are uninsured and risky, those terms were minimized during the firm’s marketing campaign.

In a statement to Forbes, Gemini said it is “committed to providing a secure and compliant platform for our customers” and will be “vigorously defending itself against these baseless allegations”.

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Aleksandr Kukharskiy


Credit: Source link

- Find Out More -

Leave A Reply

Your email address will not be published.