Investors Sue Gemini Crypto Exchange, Winkelvoss Twins

02 Jan 2023

Cryptocurrency exchange Gemini and its founders Cameron and Tyler Winklevoss are reportedly being sued by investors that are accusing the company and Mark Zuckerberg’s arch nemeses of selling interest-bearing accounts while failing to register them as securities, Gizmodo reports.

The story initially broke on Bloomberg which highlights that the case—Picha et al v. Gemini Trust Company, LLC et al—was filed in the U.S. District Court of Southern New York in Manhattan on Tuesday. The suit alleges that Gemini sold high-interest accounts through a program called Gemini Earn, and investors lent Gemini crypto assets in exchange for interest payments. While Picha et al argue that Gemini failed to register these accounts as securities prior to selling them to investors, the plaintiffs also claim that these accounts were marketed with misleading statements.