Gemini investors have sued Gemini co-founders Tyler and Cameron Winklevoss, alleging that the crypto exchange sold them interest-bearing accounts that were not registered as securities.
The product involved in the incident is Gemini Earn Trust, which gives investors up to 8% interest on their holdings. Last month, however, Gemini had to abruptly suspend withdrawals from its Earn product after its main partner Genesis Global went through the FTX incident and faced a major liquidity crisis.