Kim & Serritella LLP Announces that it has Filed a Securities Class Action Against Gemini, Tyler Winklevoss, and Cameron Winklevoss for Securities Violations in Connection with the Gemini Earn program

Gemini, a New York-based crypto asset exchange and lending platform, offered and sold Gemini interest accounts to investors via Gemini Earn, through which investors lent crypto assets in exchange for interest payments.  On or about November 16, 2022, Gemini halted Gemini Earn and refused to honor any further investor redemptions.  The Action asserts claims under the Securities Act of 1933, the Securities Exchange Act of 1934 and under state law on behalf of a proposed class of persons who invested in the Gemini Earn program (“Gemini Earn”) from February 2, 2021, through the December 27, 2022 (the “Class Period).  The Action seeks rescission and damages. 

The Action alleges that Gemini made actionable misstatements that deceived investors by touting Gemini Earn as a safe method of storing crypto assets and collecting interest payments and that Gemini omitted and concealed significant information concerning the risks associated with Gemini Earn, including information concerning its so-called partner and borrower in connection with the program, Genesis Global Capital, LLC.  The Action further alleges that the Defendants violated securities laws because Gemini failed to register as an exchange and/or broker-dealer and offered and sold unregistered securities without providing registration statements for such securities, which would have apprised investors of the risks and other important information associated with their investments.  

Note: We encourage Gemini customers to exercise caution if they see advertisements from law firms discussing the class action.   Many of these advertisements are intended to mislead investors into believing that they have to take affirmative steps to be part of the proposed class, which is inaccurate.  In addition, the law firms responsible for these advertisements are attempting to mislead investors into believing that they filed a class action against Gemini, which is also inaccurate.  Please see Picha et al v. Gemini Trust Company, LLC for the complaint K&S filed on December 27, 2022 in the U.S. District Court for the Southern District of New York. 

We’ve also been told that many Gemini users have been targeted by scammers pretending to be Gemini personnel, via email, whatsapp, and phone calls / texts. This is a common scam in the crypto space and is intended to trick investors into sharing account details, at which point the scammer is able to drain the targeted account. These calls and messages can be highly sophisticated and convincing. You can avoid scams with measures such as a) be aware that it is highly unlikely that support would reach out to you directly, particularly through text, social media, or WhatsApp; b) Always double-check urls and account names – usually companies will list their verified support emails and account, and the url will never be a variation of the primary url or have a different suffix (.co, .net, etc); c) NEVER give your password or seed phrase to anyone, even support. Read more about avoiding scams here.