Crypto exchange Gemini is being sued by investors over the sale of its interest-earning crypto products, court filings from Tuesday show. The exchange abruptly halted its Gemini Earn program in November, “effectively wiping out” investors who still had holdings, according to the court filing. The investors say Gemini’s Earn program – which offered interest of up to 7.4% to customers for lending their crypto assets – didn’t register those assets as securities in accordance with U.S. securities law. They are seeking a trial by jury, according to the complaint.
Gemini co-founders Tyler and Cameron Winklevoss (TechCrunch/Wikimedia)
Several tokens held by Sam Bankman-Fried’s embattled trading unit Alameda Research were sold late on Wednesday to the tune of millions of dollars, as the firm’s founders face criminal charges. On-chain data cited by Arkham Intelligence suggested $1.7 million worth of tokens from Alameda-linked wallets was sold in the open market over a span of several hours on Wednesday. The sales triggered concerns about sparking a steep fall in the prices of those tokens among some Crypto Twitter users.
China is launching its first state-backed non-fungible token (NFT) marketplace, the latest sign of embrace for a technology that has occupied a legal gray area within the country’s notoriously strict regulations on cryptocurrency. A ceremony celebrating the launch of the marketplace will be held in Beijing, the country’s capital, on Jan. 1.
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Market Insight: SOL’s Slide Deepens
Crypto markets slid a nominal 0.8% in the past 24 hours as broader equity markets grappled with renewed coronavirus fears stemming from China. Hong Kong’s Hang Seng Index and Japan’s Nikkei 225 had shed 1% as of Asian afternoon hours on Thursday, while the Shanghai Composite fell 0.44%. Stocks fell amid weakened risk appetite on one of the final trading days of the year, according to Bloomberg.
The bearish sentiment, however, didn’t seem to affect major cryptocurrencies, with bitcoin, ether and several other major tokens such as polkadot (DOT), binance coin (BNB) and XRP (XRP) seeing nominal changes.
Solana’ token (SOL), however, dropped as much as 10% in the past 24 hours, adding to a 20% slide over the past week. Selling pressure on the tokens came because of their close links to disgraced FTX founder Sam Bankman-Fried, who faces charges of fraud and misappropriation of customers’ funds.
Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
