US-based cryptocurrency exchange Gemini and its founders, the Winklevoss brothers, have faced a class action lawsuit by investors for allegedly earning interest from the high-yielding “Gemini Earn” program.
In a report by Bloomberg winklevoss to the brothers and Gemini exchange It was stated that a class action lawsuit was filed by the investors. Gemini’s founders, Tyler and Cameron Winklevoss, were sued in the lawsuit filed in Manhattan U.S. District Court on December 27. high-yield “Gemini Earn” It is claimed that they earn interest from their programs. Investors citing the fact that Earn products are not declared as securities, have rejected Gemini. in violation of fraud and securities laws blamed.
Launched in 2021 and investing in crypto assets 8%Investors underlined that the Gemini Earn program, which offers earnings up to .
FTX Having started to experience financial problems after its bankruptcy, Gemini announced that the Gemini Earn program, which provided high returns, in mid-November. stopped withdrawals. On the other hand, Gemini will send a letter to its customers on December 7th until a solution is found to recover user assets. keep on hanging announced that he would.
Cameron Winklevoss, one of Gemini executives, said in a December 21 report. twitter in Gemini’s post Genesis and Digital Currency Group(DCG) on behalf of the creditors committee to resolve its liquidity problems and recover assets. plan announced that it was ready.
According to some reports, crypto lending firm Genesis and its parent company DCG are offering Gemini customers Debt up to $900 million exists.