- The lawsuit is on behalf of all persons and entities that invested in Gemini Earn
- Claims include fraudulent and negligent misrepresentation, breach of contract, unjust enrichment.
Pomerantz LLP, a leading law firm with offices in New York, Chicago, Los Angeles, London, and Paris, has announced a class action lawsuit against Gemini Trust Company, LLC, Bankless Times learned from a press release.
On behalf of investors in Gemini Earn
The class action was filed in the New York State Supreme Court on behalf of all persons and entities that invested in Gemini Earn or bought Gemini Interest Accounts (“GIAs”) another way and suffered losses. The investors are suing Gemini and pursuing claims under New York General Business Law and the Securities Act of 1933.
About a week ago, SEC announced it was suing Gemini and their former partner Genesis for unregistered sale of securities.
The accusations
The common law claims include claims for fraudulent misrepresentation, negligent misrepresentation, fraudulent inducement, fraudulent concealment, breach of contract, civil conspiracy, and unjust enrichment.
Earn promised up to 8% interest
Gemini Earn was a lending product that promised up to 8% interest on crypto assets. According to the Gemini website, a number of third-party crypto lenders were among the Earn program’s partners. They served as “accredited borrowers” of the exchange’s customer funds.
Gemini is a private crypto exchange founded by Cameron Winklevoss and Tyler Winklevoss in 2014. The Winklevoss twins are defendants in the case. The exchange has its head office in New York, New York.
Genesis lost $1.8B from loans to failed borrowers
On November 16, 2022, Gemini announced that Genesis had suspended user withdrawals because they couldn’t pay the funds back within five business days as the Gemini Earn website advertised. The exchange suspended withdrawals on the Earn program thereafter.
Later, market insiders reported that the suspension of withdrawals had come after Genesis suffered losses of over $1.8 billion. These were from loans to crypto companies like Sam Bankman-Fried’s Alameda, which failed. Genesis has officially filed for Chapter 11 bankruptcy.
As a result of Gemini’s purported omissions and wrongful acts, investors in GIAs and Gemini Earn have sustained substantial damages and losses as well.
About Pomerantz
Pomerantz Law Firm is widely recognized as one of the leading firms in the areas of securities, corporate, and antitrust class litigation. It pioneered the area of securities class actions. It was founded by the late Abraham L. Pomerantz, who is remembered as the dean of the class action bar.
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