Three customers of the cryptocurrency exchange Gemini’s Earn program have submitted a demand for a class-action lawsuit against Genesis Global Capital and Digital Currency Group (DCG).
The claim is a result of the exchange’s suspension of redemptions in the Earn program due to Genesis freezing withdrawals.
According to the claimants, Gemini Earn’s master agreement was violated when Genesis did not divulge and later concealed its insolvency, and that it collaborated with DCG to hide the insolvency by exchanging $2.3 billion in debt for a ten-year promissory note.
The Winklevoss brothers, who established Gemini, and their company, Gemini Trust Co., are also in danger of being subject to a potential class-action complaint accusing them of fraudulent conduct and violations of the Exchange Act.
