US Exchange Gemini is Sued for Selling Unlisted Securities Through Earn Product
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A group of investors have filed a class-action lawsuit against crypto exchange Gemini and its founders Tyler and Cameron Winklevoss for selling unlisted securities in the form of Earn Interest Accounts.
In a statement to the court of the Southern District of New York, the company and the founders were accused of fraud and violation of the law on exchanges.
The company’s landing product Earn offered investors an income of up to 8% per annum on deposits made. In mid-November, Gemini suspended payments for the program against the backdrop of financial problems of the main partner, the Genesis Trading OTC platform.
According to media, the firm and its parent company Digital Currency Group (DCG) owe $900 million to exchange customers.
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