American law firm is preparing class action lawsuit against Gemini

The lawsuit is being filed on behalf of all natural and legal persons who invested in Gemini Earn. The allegations include fraudulent and negligent misrepresentation, breach of contract, and unjust enrichment.

A class action lawsuit has been announced by Pomerantz LLP, a leading law firm with offices in New York, Chicago, Los Angeles, London, and Paris, against Gemini Trust Company on behalf of all natural and legal persons who invested in Gemini Earn and incurred losses. The lawsuit has been filed with the New York State Supreme Court and the investors are suing Gemini and making claims under the laws of New York and the US Securities Act of 1933.

The allegations of the investors include fraudulent and negligent misrepresentation, fraudulent inducement and concealment, breach of contract, civil conspiracy, and unjust enrichment.

Gemini Earn was a credit product that promised investors up to 8% interest on deposited cryptocurrency. According to Gemini’s website, a number of cryptocurrency platforms were partners in the Earn program and served as “accredited borrowers” for the exchange’s customer funds.

Gemini is a private cryptocurrency exchange founded in 2014 by Cameron Winklevoss and Tyler Winklevoss, who are defendants in this case. The exchange is headquartered in New York. Genesis lost 1.8 billion USD through loans to failed crypto companies

On November 16, 2022, Gemini announced that Genesis can no longer meet the demands of creditors and has suspended all withdrawals of customer funds. The website of Gemini Earn subsequently announced that all payments from the Earn program will also be suspended.

Later, market insiders reported that the suspension of withdrawals was due to Genesis incurring losses of over 1.8 billion USD, stemming from loans to crypto companies, including the now-insolvent trading firm Alameda Research by Sam Bankman-Fried. Genesis has now officially filed for bankruptcy in the USA.

As a result of the alleged failures and wrongful actions of Gemini, investors in Gemini Earn have also suffered significant damages and losses. About Pomerantz LLP

The law firm Pomerantz LLP is widely recognized as one of the leading firms in the field of securities, corporate, and antitrust class action litigation.

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