Cryptocurrency Investors Take Legal Action Against The Winklevoss Twins

A group of crypto traders filed a lawsuit against the owners of Gemini Trust Co., Cameron, and Tyer Winklevoss. Investors who suffered losses claim they didn’t have enough information from the crypto platform to make an informed choice.

The claimants assert that the unregistered Gemini Earn product meant they could not assess more details on the proper use of the investment product. Since halting withdrawals in response to Genesis’ liquidity issues, Gemini has not provided its Earn clients with any updates.

Investors are currently not happy with Tyler and Cameron Winklevoss. They have filed a lawsuit against them alleging that the exchange and its executives violated the Exchange Act, which is an act of fraud. They made their submission in a class action lawsuit submitted on Tuesday to the Southern District of New York’s federal court.

Gemini gives traders access to top benefits like Gemini Earn, where users can deposit coins for interest – unlike banks and still get nearly 8% gain, but it depends on the asset. When Genesis Global—the exchange’s leading partner—faced a liquidity issue last month, Gemini abruptly suspended withdrawals for Earn.

Gemini Earn Issues Addressed

Midway in November, after the initial reports that FTX was having financial issues, Gemini started having severe problems regarding Gemini Earn. Gemini Earn’s million-dollar worth of digital assets is stuck on Genesis.

The New York-based corporation turned to financial services company Houlihan Lokey earlier this month to help resolve the liquidity issues at Genesis and DCG and develop a plan for asset recovery. Houlihan Lokey serves as the creditor committee’s financial advisor.

On December 20, the exchange stated that it is still working “with the utmost urgency” with Genesis and DCG, with all parties “engaged and collaborative.” Since November, the crypto exchange blocked users from making withdrawals, making the platform inaccessible due to its exposure to Genesis’ liquidity issues.

Ten days ago, Cameron Winklevoss tweeted that Gemini had found a way to recover the stuck assets through the help of its consultants. The current crypto bear season and the recent FTX collapse won’t be forgotten in a hurry, as it has adversely affected Gemini and many crypto exchanges.

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