The Winklevoss brothers are facing a class action lawsuit for failing to register their interest accounts as securities.
Investors filed a class action lawsuit accusing the Gemini founders of fraud and violating stock market law.
Winklevoss Twins React From Investors
The complaint filed by investors referred to interest-bearing accounts:
“Gemini has marketed GIAs in false and misleading terms as a safe method of collecting interest.
Gemini has also omitted and hidden important information regarding risks related to Gemini Earn, including information about its alleged partner and borrowers in connection with the program.”
Gemini Trust Earn products were promising returns of up to 8%. Redemptions were also stopped due to liquidity problems in Genesis Global caused by the collapse of FTX last month.
Investors stated that the company did not inform them enough.
“In making the necessary disclosures, investors are left to fend for themselves as their allegedly safe investments take advantage of the yield features of unregistered and highly speculative securities.”