A class action lawsuit was recently filed against cryptocurrency exchange Gemini for allegedly issuing unauthorized securities through the firm's Earn program.
Gemini collaborated with cryptocurrency lender Genesis to offer traders up to 8% returns on their holdings through the Earn program. However, Genesis announced earlier this month that the collapse of FTX had severely impacted its finances and that it could no longer pay out investors in Gemini's Earn program.
According to the plaintiffs, if the Earn products had been legally registered, they would have received disclosures that would have allowed them to accurately assess the associated risks.
Customers claim they were misled into believing Earn products were safe and that while Gemini's agreements state is uninsured and volatile, those terms were lessened during the firm's marketing campaign.
Winklevoss lays out his case in an open letter to Barry Silbert, the founder of Digital Currency Group (DCG), the parent company of Genesis.
Silbert chose not to remain silent and responded on Twitter, claiming that much of what Winklevoss said was false.
Winklevoss appears to reject Silbert's response, calling it "completely disingenuous." The Gemini founder also sets a January 8th deadline for Silbert to resolve the issue, though it's unclear what might happen on that date.
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