Investors Sue Winklevoss Twins Earn “Unregistered” Gemini
Bloomberg reports that a class action lawsuit has been filed against Gemini Trust Co. and its founders, Tyler and Cameron Winklevoss. The lawsuit claims that the cryptocurrency exchange gave out interest-bearing accounts without registering them as securities, which is against the law.
In a class-action lawsuit filed Tuesday in the U.S. District Court for the Southern District of New York, investors accuse the company and its founders of fraud and breaking the Exchange Act.
Cameron and Tyler Winklevoss started Gemini in 2015. It has a high-yield product called Gemini Earn that lets people deposit their cryptocurrencies for interest, like a bank account, and gives them returns of up to 8%, depending on the asset, on their holdings.
Gemini unexpectedly stopped withdrawals for Earn last month when Genesis Global, the exchange’s main partner, ran into a liquidity problem. This was because the bankruptcies of FTX, Alameda Research, and dozens of other companies had caused a chain reaction that affected many other companies.
Related: Avalanche is now officially on Gemini, and the inbound transfer is now open.
Investors are suing the Winklevoss twins over their “unregistered” Gemini Trust. This article was originally published on Coin Edition.