Crypto exchange Gemini is being sued by investors over the sale of interest-earning crypto products, court filings from 27th Dec show.
Investors Brendan Picha and Max J. Hastings filed a class action lawsuit on behalf of themselves and “others similarly situated,” with the U.S. Southern District Court of New York. According to the complaint, they want a jury trial.
According to Picha and Hastings, Gemini’s Earn programme, which offered customers up to 7.4% interest for lending their crypto assets, did not register those assets as securities under US securities law.
According to the filing, Gemini abruptly halted the programme around Nov. 16 after crypto exchange FTX declared bankruptcy, causing a liquidity crisis at Genesis Trading, which served as Gemini’s borrower.
(Reporting by Shikha Singh; Editing by Laxmikant Khanvilkar)
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