JAKARTA Investors filed a class action lawsuit against crypto trading company Gemini. In addition, Gemini is also suspected of selling unregistered securities. Gemini and their founders the focus on the lawsuit.
According to a Bloomberg report, Gemini, along with its founders, the Bangkaos brothers, are the targets of a lawsuit claiming that they are selling interest accounts through the company's Earn program as unregistered securities.
Under the Earn program, Gemini partnered with crypto lender Genesis to give investors a yield of up to 8 percent of their holdings.
However, earlier this month Genesis announced that the FTX's collapse greatly affected its finances and could no longer pay investors for the Earn Gemini program. According to a DailyHodl report, Genesis currently owes Gemini around 900,000,000 US dollars.
On the other hand, Gemini "rejected to respect the recovery of further investors, effectively removing all investors who still have holdings in this program," the report said.
The plaintiffs said if Earn products had been properly registered, they would get disclosures that would allow them to accurately evaluate the risks associated with them.
Customers argue that they are misled into believing that Earn products are safe and that even though Gemini's agreement states that Earn products are not insured and risky, those terms are minimized during the company's marketing campaign.
In a statement to Forbes, Gemini said it was "committed to provide a platform that is safe and obedient to our customers" and would "intensely defend itself against these baseless accusations".
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