One of the major investors of the bankrupt crypto lending platform ‘BlockFi’ has filed a complaint against its founders, two directors, and crypto exchange Gemini in the United States District Court of New Jersey.
In the complaint, the plaintiff Trey Greene, whose nearly $2 million fund is stuck in BlockFi, accused the defendants of selling unregistered securities, violating consumer frauds and exchange acts, etc.
The filing read: “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.”
Also Read: BlockFi to File Assets and Liabilities Following Bankruptcy Case
Trey Greene stated that BlockFi founders Zac Prince and Flori Marquez falsely represented their offerings by comparing them with federally-insured bank products, which are “unregistered securities”.
According to Trey Greene, he invested $1.5 million in an interest account, A.K.A unregistered securities. By doing so, he gained $400,000 in interest, which is invested back into the lending platform.
BlockFi had suspended a withdrawal on 10th Nov 2023, so investors could not access their funds.
