Three users of cryptocurrency exchange Gemini’s Earn program have filed a request for class-action arbitration against Genesis Global Capital and Digital Currency Group (DCG).
The request comes after the exchange suspended redemptions in the Earn program due to Genesis freezing withdrawals.
Furthermore, the claimants allege that the terms of the master agreement for Gemini Earn were broken when Genesis failed to disclose and later concealed its insolvency. And that it worked with DCG to hide the insolvency by exchanging $2.3 billion in debt for a promissory note due in a decade.
The Winklevoss brothers, who founded Gemini, and their company, Gemini Trust Co., are also facing a potential class-action complaint accusing them of fraud and violations of the Exchange Act.
