Customers of the “Earn” program of popular US crypto exchange Gemini, founded by the Winklevoss brothers, filed a class action lawsuit against Genesis and its parent company Digital Currency Group (DCG), citing the suspension of withdrawals.
Genesis and roofing company DCGfaced a class action lawsuit from investors of the Earn program, in which Gemini suspended withdrawals. The 3 plaintiffs have been awarded by Genesis the digital assets of themselves and all Gemini Earn users, in an ongoing dispute between the firm and users. “main contract” He claimed that he should return it accordingly.
However, there was no clear statement from the company, which has not been able to withdraw any money for about a month. In addition, it was alleged that Genesis declared bankruptcy in the summer of 2022, at the time of breaching the contract and hiding the bankruptcy from customers.
Plaintiffs, this is what happened on the Genesis front. “your secret bankruptcy” He then claimed that the company made it look like it had a money that did not exist by swapping promissory notes within itself. The bankruptcy of the transfer Three Arrows Capital‘to (3AC) belonging 2.3 billion dollar debt the right to collect due in 2033 of a 1.1 billion dollar bill It was pointed out that it was due to the exchange.
A similar claim was recently made by 3AC co-founder and CEO. Water Zhu It was also suggested by Zhu had already stated that DCG’s assets had reached “zero.”