Cryptocurrency exchange Gemini and its founders, Tyler and Cameron Winklevoss, are facing a class action lawsuit over interest-bearing accounts, Bloomberg reports.
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According to the plaintiffs, the exchange failed to register its crypto lending product Gemini Earn as a platform, which offers securities. The exchange is also accused of fraud and violations of the Exchange Act.
The investors said in the lawsuit that the exchange "refused to honor any further investor redemptions, effectively wiping out all investors who still had holdings in the program."
Gemini Earn was offering clients as much as 8% in interest on their holdings until it suddenly terminated services after its key partner Genesis Global started facing liquidity issues. Gemini emphasized that the move doesn't impact its other products and services. However, the exchange hasn't resumed services so far.
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