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Tyler and Cameron Winklevoss have been sued alongside Gemini, the crypto exchange they founded, over charges of fraud by investors in the company, Markets Insider reported. The class action went to Manhattan Federal Court on Tuesday, earlier this week.
Tyler, this is Cameron, Commonly referred to as winklevoss twins, have a long history in the tech sector and made headlines for the first time when they went after Mark Zuckerberg, claiming they stole their idea for a social media site, when he got Facebook out, like we used to call it.
We've settled the case, and the twins used the money they got to establish the capital of Winklevoss to finance their future projects, like gemeaux, a cryptography exchange service where users can make purchases, sell, and store electronic assets. The department is active in the United States, Canada, Hong Kong, South Korea and Singapore.
They're going after investors.
Supported by the popularity of cryptocurrency over the last decade, Gemini started offering a financial product, Gemini Earn Program, which promised guaranteed results. According to the Bloomberg report, the program has attracted investors with a promise of up to 8 per cent return on their investments.
However, following the collapse of the crypto exchange FTX last month, Gemini abruptly stopped its offering Investors Brendan Picha, and Max J. Hastings have dragged the company to court for failing to register the assets as securities in line with federal law.
According to the complaint, Gemini refused redemptions to investors, which had the effect of eliminating all investors who held interests in the program. The applicants submit that if the Winklevoss twins had registered the assets as securities, investors would have been provided with information that would have allowed them to better assess their risks.
Gemini investors hit by FTX crash.
Initially, the FTX crash may appear to have no impact on other crypto exchanges. Although experts have warned that financial regulators will go through several crypto-enterprises, the prosecution for this occasion did not come from the regulators, but from the investors themselves.
Following the collapse of ftx, the original capital of institutional crypto lender was also affected. Genesis is one of the key partners of gemini and, in the aftermath of the FTX meltdown, failed to return crypto assets that he borrowed from Gemini winning investors, forcing the Gemini to discontinue the program.
An article on its website indicates that Gemini is working with "the greatest urgency" to solve the liquidity problems at the genesis and will work throughout the Christmas period on this issue.
While the collapse of ftx was a result of his bad deeds, the cryptocurrency industry was also defeated in 2022. The industry kicked off the year on the 2021 summits. However, while the world was back to normal before the pandemic and macroeconomic conditions were changing, cryptocurrencies lost momentum and fell to a quarter of their valuations early in the year.
One of the biggest crashes in May saw cryptomarket lose $200 billion in just one day. Winklevoss twins, which used to be worth four billion apiece, are no longer on Bloomberg's billionaire list.
