An investor with frozen assets in the bankrupt cryptocurrency lender BlockFi has filed a class-action complaint against BlockFi's executives, two directors, and cryptocurrency exchange Gemini. The complaint alleges that BlockFi and Gemini sold unregistered securities through false statements and significant omissions.
Allegations of False Statements and Significant Omissions
The investor, Trey Greene, claims that BlockFi is one of the biggest sellers of unregistered securities to citizens of the United States and other nations through the unregistered "BlockFi interest accounts." The complaint also alleges that BlockFi skewed the risks related to its investment accounts and neglected to provide critical information to investors.
BlockFi and Gemini Face Controversies
BlockFi has faced multiple controversies recently, including a $1.2 billion exposure to the defunct FTX and the suspension of withdrawals in response to FTX's bankruptcy declaration. Gemini has also faced criticism after users were misinformed about FDIC coverage.
Trey Greene Seeks Compensation for Consumer Fraud Act Infringements
Greene invested over $1.5 million in interest accounts that generated capital gains and over $400,000 in interest but is now unable to withdraw the money. The complaint seeks compensation for consumer fraud act infringements, reimbursement of legal fees, complete compensation of all funds received by the defendants, an interest that has accumulated, and a ruling prohibiting further breaches of the act.
This article on the class-action complaint against BlockFi and Gemini for selling unregistered securities provides a comprehensive overview of the allegations, recent controversies, and compensation sought by the investor.