Gemini facing a class action lawsuit for concealing risks in its Earn program

Crypto Regulation
Gemini facing a class action lawsuit for concealing risks in its Earn program

Rosen Law Firm, a global investor rights law in New York, is leading a class action against Gemini, a cryptocurrency exchange, and its founders, Tyler and Cameron Winklevoss, over the ramp’s alleged concealment of risks in their Earn product.

Rosen Law advises more investors to join the lawsuit

Rosen Law Firm is the latest to file a class action lawsuit against Gemini and its founders. The case is on behalf of investors who lost significant assets in the Gemini Earn debacle.

According to reports, the law firm is suing the exchange over alleged misinformation on the risks involved in investing in the Earn program. They assert that Gemini deliberately concealed risks for users subscribing to the Earn program, touting it as a safe investment. 

Rosen Law Firm also said Gemini should have informed its investors about relevant information on the partners and borrowers involved in the program. Furthermore, they claim the exchange operated as an unregistered crypto firm and knowingly sold unregistered securities to investors, exposing them to financial risks.

Rosen Law has advised all individuals that have invested in the Earn program between Feb. 2, 2021, and Dec. 27, 2022, to come forward and join the class action to get compensation from Gemini.

Created in Feb. 2021, Gemini Earn is a program that allows customers to generate yields by lending their crypto assets to a borrowing counter-party.

FTX Contagion

On Nov. 16, 2022, the exchange announced that it had paused withdrawals because its primary lender, Genesis Global, had been exposed to the FTX contagion. FTX’s bankruptcy had widespread effects across crypto, impacting Genesis Global and its parent company, Digital Currency Group (DCG).

As reported, FTX recently secured a Delaware bankruptcy judge’s permission to sell four assets to pay back its creditors.

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Ogwu Osaemezu Emmanuel

Ogwu Osaemezu Emmanuel is a graduate of Mass Communication and Media Studies. He joined the blockchain movement in 2016 when a friend of his introduced him to an investment platform accepting bitcoin. He has never looked back since then. Emmanuel believes the world needs real change and freedom from poverty. He sees crypto and the underlying distributed ledger technology as the catalyst to a better future for all.