Crypto investors say BlockFi executives and crypto exchange Gemini used a "steady stream" of misleading and false information to promote BlockFi Interest Accounts.
Crypto investor Trey Greene has filed a class action complaint against BlockFi founders Zac Prince and Flori Marquez, the company’s directors Tony Laura and Jennifer Hill, as well as crypto exchange Gemini.
According to the documents filed in the US District Court for the District of New Jersey, Greene is filing a complaint as a representative of all BlockFi stakeholders that invested in unregistered BlockFi Interest Accounts from March 2019 to November 10th, 2022.
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In the class action complaint, Trey Greene accuses entities of selling unregistered securities, violating consumer fraud and exchange acts, and breaching their duties as co-founders or directors.
In particular, Greene claims that BlockFi co-founders used a “steady stream” of “misrepresentations” and false information to advertise and sell BlockFi’s unregistered securities. In his filing, Greene noted that BlockFi co-founders compared BlockFi’s unregistered securities to federally-insured bank products.
The unregistered securities sold by the BFI <BlockFi> Defendants on behalf of BlockFi were marketed and sold via a steady stream of misrepresentations and material omissions by Prince and Marquez over several years and through intermittent misrepresentations by Defendant Gemini.
On top of that, the class action complaint highlighted that crypto exchange Gemini was aware and engaged in making “false and misleading statements” regarding BlockFi interest accounts.
Gemini knew of, and acquiesced in, the materially false and misleading statements about the status, the safety and accessibility of Plaintiff’s and class members’ assets at Gemini and about the risks of loss. Gemini supplied materially false and misleading information to BlockFi for use in marketing the BIAs <BlockFi Interest Accounts>.
Trey Greene alleges that he invested over $1.5 million in BlockFi Interest Accounts. From the investments, Greene reportedly accumulated more than $400,000 in earned interest and capital gains, which were re-invested into BlockFi’s Interest Accounts.
In a class action complaint, Trey Greene seeks to receive compensation for damages caused by all alleged counts, payment for his lawyer costs, and a refund of all funds acquired from the BlockFi Interest Accounts.
It is worth noting that on November 28th, 2022, BlockFi filed for bankruptcy.
