Joe Rogan, Dave Portnoy, and Andrew Tate are among the high-profile figures named in a class action lawsuit against cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss. The lawsuit alleges that Gemini sold unregistered securities through its Earn program, which offered users high-yield interest on their crypto deposits.
The plaintiffs claim Gemini misrepresented the risks associated with the Earn program, particularly failing to adequately disclose the platform’s reliance on lending partner Genesis Global Capital. Genesis filed for bankruptcy in January 2023, freezing billions of dollars in user funds held through Gemini Earn.
The lawsuit argues that Gemini actively promoted the Earn program through endorsements from celebrities and influencers, misleading investors into believing it was a safe and secure investment. These promotional activities, the plaintiffs allege, exacerbated the risks and ultimately led to significant financial losses for users when Genesis collapsed. The suit seeks to hold Gemini accountable for the damages incurred by investors who participated in the Earn program. The accusations revolve around securities law violations and misrepresentation, alleging that Gemini knew, or should have known, about the precarious financial situation of Genesis.
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