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Winklevoss, Gemini class action overview:
- Who: Two men who invested in Gemini interest accounts through the Gemini crypto asset exchange are suing Gemini and the Winklevoss twins, owners of the company.
- Why: The plaintiffs say the accounts were misleadingly represented to customers, causing them to lose money amid crypto market collapses.
- Where: The Winklevoss, Gemini class action lawsuit was filed in a New York federal court.
Two men who invested in Gemini interest accounts through the Gemini crypto asset exchange are suing the company and its owners, the Winklevoss twins, alleging the accounts were deceptively marketed to them.
Plaintiffs Brendan Picha and Max J. Hastings filed a class action complaint against Gemini Trust Company LLC and Tyler Winklevoss and Cameron Winklevoss Dec. 27 in a New York federal court, alleging violations of securities and exchange laws.
According to the lawsuit, Gemini, a New York-based crypto asset exchange and lending platform, sold Gemini interest accounts to investors through a program called “Gemini Earn,”
The program saw investors lend crypto assets to Gemini in exchange for interest payments.
However, the interest accounts are securities under federal law, and Gemini failed to register as securities before selling to individual investors, the lawsuit alleges.
Further, Gemini allegedly marketed the GIAs with “repeated false and misleading statements,” including that GIAs were a “secure method of collecting interest.”
However, the plaintiffs say they had no idea their accounts could be wiped out through the market crash that was around the corner.
“When Genesis encountered financial distress as a result of a series of collapses in the crypto market in 2022, including FTX Trading Ltd., Genesis was unable to return the crypto assets it borrowed from Gemini Earn investors,” the lawsuit alleges.
“On or about November 16, 2022, Gemini halted the Gemini Earn program and refused to honor any further investor redemptions, effectively wiping out all investors who still had holdings in the program, including Plaintiffs.”
Gemini concealed important information regarding GIA risks, lawsuit alleges
Gemini also concealed significant information concerning the risks associated with Gemini Earn, including information concerning its “so-called partner and borrower” in connection with the program, Genesis Global Capital LLC, to which it gave all Gemini Earn investors’ crypto assets, the plaintiffs allege.
“Without these disclosures, they were left to fend for themselves as their purportedly safe investments experienced the return characteristics of the unregistered and highly speculative securities that they were,” the plaintiffs said.
The plaintiffs seek to represent anyone who invested in Gemini Earn or otherwise purchased GIAs from Feb. 2 to now and were harmed. They are suing for multiple violations of the Exchange Act, violations of the Securities Act, common law fraud, negligent misrepresentation and unjust enrichment.
They seek certification of the class action, damages, fees, costs and a jury trial.
Meanwhile, another recent crypto class action lawsuit alleges blockchain startup company Yuga Labs and a well-connected Hollywood agent recruited celebrities to promote and sell Yuga’s suite of digital assets, including its Bored Ape Yacht Club collection.
Did you lend cryptocurrency through Gemini Earn to Genesis? Were you told that you could earn interest on the lent cryptocurrency? If so, you may be eligible to participate in a Gemini and Genesis cryptocurrency class action lawsuit investigation.
Are you affected by this Gemini class action lawsuit? Let us know in the comments!
The plaintiffs are represented by James R. Serritella of Kim & Serritella LLP.
The Gemini class action lawsuit is Brendan Picha et al., v. Gemini Trust Company LLC, et al., Case No. 1:22-cv-10922 in the U.S. District Court for the Southern District of New York.
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8 thoughts onWinklevoss class action alleges Gemini crypto company duped investors
add me please
The Company Gemini has sold my informative to the dark web! Google one has found this information for me. My identity has been stolen. There’s been loans taken out in my name, money stolen from my pay pal and cash app and bank account! This has like basically ruined me!
I would like to enter this lawsuit!
I would like to enter. They have not done anything to return my dogecoin investment, which has been absolutely wrecked at this point. I check the Gemini app everyday and it just says my portfolio amount is pending. Absolutely ridiculous and I’m tired of it.
I would like to enter the class action
Thank you. I currently have assets frozen in earn redemption and felt duped by the earn product as it was marketed as a secure interest bearing account. Would like to be kept updated on this lawsuit.
I would like to thank you for taking the time out to accept my application for this lawsuit
Thank you