Genesis founded by the Winklevoss twins way back in 2014 is facing allegations of misappropriating customer funds in their own version of a fraud scheme. According to a class action lawsuit, the twins are being sued by investors after they allegedly shut investors out following a span of mass liquidation that went on for a while. They maintain that such occurred due to market uncertainty following the shocking collapse of FTX.com and the fall of Sam Bankman-Fried.
Gemini totally “refused to honor any further investor redemptions, effectively wiping out all investors who still had holdings in the program,” according to the lawsuit filed on Tuesday.
A number of customers have already filed arbitration claims, according to Bloomberg. Bloomberg also notes that the twins are accused of violating the Exchange Act.