Gemini, a crypto exchange and custodian founded by the Winklevoss twin brothers, and its Ethereum-based market platform for non-fungible tokens Nifty Gateway, are facing a class-action lawsuit for allegedly selling unregistered securities.
Gemini Faces Lawsuit For Selling Securities As NFTs
According to a Law360 report published on December 13, an identified NFT buyer has filed putative class action lawsuit against Gemini and its subsidiary Nifty Gateway, seeking compensation after losing millions from the NFT project.
Through his Herman Jones law firm, the plaintiff has tabled a lawsuit before a court in New York, accusing Gemini and Nifty Gateway of selling unregistered securities in the form of NFTs to unsophisticated investors.
Moreover, the plaintiff has alleged that Gemini and its Nifty Gateway did not disclose the nature and risk associated with digital collectibles. The plaintiff has million following the recent bear market, which has left many digital assets shedding more than 70% in their value.
Other NFTs Firms Facing Lawsuits
Gemini and Nifty Gemini lawsuit appeared just a few days after Yuga Lab, the parent company behind the popular Bored Ape Yacht Club NFT collection, and crypto fintech firm MoonPay faced a similar lawsuit.
Earlier this week, two plaintiffs, Adam Titcher of California and Adonis Real from Florida, accused NFT pioneer Yuga Labs and MoonPay of using celebrities to promote Bored Ape Yacht Club NFT collections.
Through their Scott+Scott law firm, the plaintiffs named more than 40 celebrities and companies, including Paris Hilton, Snoop Dog, Jimmy Fallon, Justin Bieber, Madonna, Serena Williams, Post Malone, Diplo, and more, as defendants.
In September, the United States Securities and Exchange Commission (SEC) filed a lawsuit against crypto influencer Balina for allegedly promoting his Sparkster project. In October, the regulatory commission charged Kim Kardashian for illegally promoting EMAX.
Kim Kardashian, one of the most famous women in the world, faced a fine of $1.26 million for unlawfully touting crypto security. But interestingly, Kardashian later challenged the lawsuit and successfully won.
Related
- Yuga Labs Faces Lawsuit For Using Celebrities To Promote Bored Ape NFTs
- Who’s Next After Kim Kardashian Fined $1.26 Million For Touting EMAX Coin?
- Crypto & NFT Prices Rally As Sam Bankman-Fried Taken Into Custody
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