Investors Sue Gemini Crypto Exchange, Winklevoss Twins
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Twins Cameron and Tyler Winkelvoss are facing a major class action lawsuit from investors who used Gemini, their cryptocurrency exchange.
T. Schneider | ShutterstockAccording to Bloomberg, harmed investors believe the stock exchange and Winkelvosses sold them interest-bearing accounts that were not registered as securities.
The Winkelvosses, who rose to fame after suing Facebook over its resemblance to a former social media site they founded, launched New York-based Gemini in 2014. Consumers use the platform to shop and sell digital assets, and one of the company's most popular programs has been Gemini Earn. The initiative, launched in 2020, allows users to earn interest on their crypto holdings and has received a lot of attention from the crypto community and the media.
As described in a press release from Kim & Serritella LLP – the law firm that filed the suit in the Southern District of New York (SDNY) – the lawsuit explicitly claims that the defendants failed the plaintiffs by not telling them client assets were loaned out at below-market rates or used for other types of potentially risky corporate actions. The lawsuit also alleges that some investors received no income despite instructions from Gemini. Plaintiffs seek damages for losses resulting from the alleged misrepresentations.
The outcome of this case has profound implications for crypto asset investors and crypto asset exchanges. If successful, this could lead to stricter regulations around certain aspects of digital asset trading, such as disclosure requirements or customer protections, which could impact crypto investment decisions. -currencies.
The Gemini Earn Program Case Highlights Some Critical Issues With Investment Disclosure Requirements and Client Protection in the Cryptocurrency Space; issues that will likely be addressed more directly in the future, regardless of the outcome of this particular case.
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The opinions expressed by entrepreneurs contributors are their own.
Twins Cameron and Tyler Winkelvoss are facing a major class action lawsuit from investors who used Gemini, their cryptocurrency exchange.
T. Schneider | ShutterstockAccording to Bloomberg, harmed investors believe the stock exchange and Winkelvosses sold them interest-bearing accounts that were not registered as securities.
The Winkelvosses, who rose to fame after suing Facebook over its resemblance to a former social media site they founded, launched New York-based Gemini in 2014. Consumers use the platform to shop and sell digital assets, and one of the company's most popular programs has been Gemini Earn. The initiative, launched in 2020, allows users to earn interest on their crypto holdings and has received a lot of attention from the crypto community and the media.
As described in a press release from Kim & Serritella LLP – the law firm that filed the suit in the Southern District of New York (SDNY) – the lawsuit explicitly claims that the defendants failed the plaintiffs by not telling them client assets were loaned out at below-market rates or used for other types of potentially risky corporate actions. The lawsuit also alleges that some investors received no income despite instructions from Gemini. Plaintiffs seek damages for losses resulting from the alleged misrepresentations.
The outcome of this case has profound implications for crypto asset investors and crypto asset exchanges. If successful, this could lead to stricter regulations around certain aspects of digital asset trading, such as disclosure requirements or customer protections, which could impact crypto investment decisions. -currencies.
The Gemini Earn Program Case Highlights Some Critical Issues With Investment Disclosure Requirements and Client Protection in the Cryptocurrency Space; issues that will likely be addressed more directly in the future, regardless of the outcome of this particular case.
These friends use an underrated strategy to launch a parallel deli that's on track to make at least $80,000 in December
I'm the editor of Business News, and I even fell victim to an online scam that cost me $300
Switching to a 4-day work week sounds like a great idea. But could it actually make the exhaustion worse?
What is L...
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