By Richard Hines
Gemini, the crypto exchange firm’s investors have filed a lawsuit against the founders. The investors accuse both founders of fraud stating that the firm released unregistered securities as part of the earn trust fund offerings.
Alleged Fraud Conspiracy
The two co-founders of the Gemini cryptocurrency exchange firm have been charged with conspiracy to commit fraud on the earn trust offerings.
The Gemini firm, which is affiliated with the Genesis Global firm, previously informed the public that the earn trust fund offering disbursement would be delayed because Genesis Global had ceased all operations.
It was later discovered that Genesis Global had been experiencing liquidity issues, which also affected the company Gemini.
Investors have accused Tyler and Cameron Winklevoss, the company’s two founders, in lawsuits they have brought.
These investors alleged that the company provided them with interest-bearing accounts that were not registered securities.
As a result, the brothers were sued under the grounds that they had breached the Exchange Act and committed fraud.
The Gemini Firm’s earn trust program had provided its investors with returns of above 8%.
The company abruptly stopped all withdrawals, claiming that its subsidiary partner, Genesis Global, was experiencing a severe liquidity issue as a result of the FTX Meltdown, which occurred during the time FTX filed for bankruptcy.
The investors claimed in the lawsuit that the Gemini Founders disregarded and didn’t keep to their obligations under the earn trust scheme and also cleared out investo’ holdings in the program.
Investors Seeth Due To This Act Of Alleged Fraud
They continued by saying that since these products were not registered securities, investors made this transaction blindly since they were unaware of the state of the Earn trust fund offerings.
Most investors argue that if they had known beforehand that these were not securities, they would have been able to access the investment well and manage this risk or totally not invest into their program.
However, Gemini Firm quickly took action to address the issue and publicly said that it is doing all possible to address it and help the company get out of its liquidity dilemma.
The firm posted this message on their website to inform investors to see and understand that the team is doing everything in their power to resolve this issue and restore order to its operations.
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