- Gemini and Nifty Gateway sued for selling unlicensed securities.
- Under Law360, a well-known NFT buyer filed a lawsuit.
- Virtual coins lost more than 70% of their value.
Gemini, a crypto marketplace and depository created by the Winklevoss twins, and Nifty Gateway, an Ethereum-based trading platform for non-fungible tokens, are facing a class-action lawsuit for selling illegal, unlicensed assets.
The Nifty Marketplace is a blockchain-based network that allows users to access a selection of the most famous art and collectible markets online.
According to a December 13 Law360 post, a known NFT buyer has filed a putative class-action suit against Gemini and its subsidiary Nifty Gateway, demanding reimbursement for losses incurred due to the NFT initiative.
The defendant has filed a complaint in New York through the Herman Jones law firm, accusing Gemini and Nifty Gateway of peddling unauthorized securities to unsuspecting clients in the form of NFTs.
Furthermore, according to the complaint, Gemini and its Nifty Gateway neglected to describe the nature and risk of digital collectibles. The claimant has lost millions of dollars in the current bad market, which has seen many virtual currencies lose more than 70% of their value.
This is not the only case where NFT firms are facing lawsuits. The Gemini action comes only days after Yuga Lab, the primary business of the famous Bored Ape Yacht Club NFT line, and crypto finance startup MoonPay were sued similarly.
Kim Kardashian, one of the most well-known women, was penalized $1.26 million for falsely promoting crypto safety. However, Kardashian later fought the case and was victorious. In October, she was charged by the regulatory authority for unlawfully marketing EMAX.
Adam Titcher and Adonis Real charged NFT founders Yuga Labs and MoonPay with leveraging celebs to sell the Bored Ape Yacht Club NFT collection.
The US Securities and Exchange Commission issued a complaint against crypto celebrity Balina in September for fraudulently advertising his Sparkster project.