Consumer complaint received 2022-06-30
Company: Winklevoss Exchange LLC
State: NY
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Other transaction problem

Complaint:
I got an email notification from Gemini support on XX/XX/XXXX informing me that Gemini was closing my account 5 days from the receipt of this email. I am only allowed to sell my crypto assets into XXXX which then can be withdrawn to my linked bank account. I do not accept being forced to sell my valued crypto assets to XXXX at a cost to myself. Especially, with no explanation from Gemini on how they can be allowed to do this to me. 

Gemini, on false premises and with no explanation, is preventing me from withdrawing my crypto assets after I had extensive correspondence with Gemini support for almost 3 months. They just made an excuse on false premises of blocking the withdrawal of my crypto assets for a very prolonged period of time on the grounds that I did not respond to requests for information from Gemini support until XX/XX/XXXX. 

The first false premise by Gemini was that I willingly ignored the XX/XX/XXXX request for information made by Gemini support until XX/XX/XXXX. Another false premise by Gemini was that I willingly ignored Gemini support 's notification, on XX/XX/XXXX, stating that my crypto assets are blocked from being withdrawn and I would need to contact Gemini support to resolve this issue. Gemini has made it seem I waited until XX/XX/XXXX to respond to this notification. 

Gemini 's has made it seem I did not provide all the requested info they wanted until XX/XX/XXXX. Gemini has also made it seem there wasn't a lot of correspondence and complaints between myself and Gemini support via email leading up to Gemini support 's final request for info about a specific transaction. This final request for information was made on XX/XX/XXXX. At no point in any previous emails before XX/XX/XXXX did they request this specific information from me. 

It is a false idea that Gemini support requested all the information they wanted from me on the first request for information on XX/XX/XXXX. In fact I just asked why my account is being blocked on XX/XX/XXXX without any reference or knowledge to the previous emails Gemini support sent. I did not know about them prior to filing my first complaint to the CFPB. But I did find out about them before Gemini responded to my first CFPB complaint. 

On XX/XX/XXXX, Gemini support responded with a request for a photo of myself holding my ID in one hand and a written note, to their specification, in my other hand. If I was aware of the previous emails from Gemini support beforehand I would not have simply asked why my account was blocked from withdrawing my crypto assets. Nor would I have often asked Gemini support, throughout, about how I can resolve this issue. If I had known what information Gemini support wanted from me at the start and further on into my email correspondence with them, I would have given them this information as soon as I could. I was looking to Gemini support to provide me with guidance on how to resolve this problem as soon as possible. Thus, I consistently complained to Gemini support about why my account was still blocked from withdrawing my crypto assets. Right up until my first CFPB complaint on XX/XX/XXXX. Gemini support kept requesting more information from me with each subsequent reply they sent me. Gemini support stated they wanted this further information from me so that I can resolve this problem with Gemini. 

I fulfilled all their requests for information. 

At times, I waited for Gemini support responses without complaining in hopes they would resolve this issue, sooner rather than later. But it only led to Gemini support dragging out this process of solving this problem even further with no resolution in site. 

Gemini does not realize how incredibly protracted this process has been for me. Just being able to still sell, lend, and buy crypto currency and deposit and withdraw USD during the review process is not enough to quell my significant frustration on how long they have taken to give me back my valued crypto assets. I yet to get back my crypto assets from Gemini. 

Throughout my email correspondence with Gemini support, multiple requests for information were provided to them. Some of the information I provided them were documents in the form of multiple bank statements ; multiple brokerage account statements. These documents highlighted source of income and capital. I complained often to Gemini support, throughout, about why this process was taking so long. Below is a summary of what occured between myself, Gemini, and Gemini support.

I made at least five complaints to Gemini support via email, at least three posts and three direct message complaints to official Gemini support channels on the XXXX platform requesting replies from Gemini support via email. I provided all the emails to Gemini with my first CFPB complaint. All this in the hope of a resolution to this issue of blocking the withdrawal of my crypto assets for such a long period of time. 

On XX/XX/XXXX, I complained to Gemini support about my XXXX withdrawals being blocked ; Gemini support made their first request for info on XX/XX/XXXX ; On either XX/XX/XXXX or XXXX, I provided the requested info ; I sent a further complaint to Gemini support on XX/XX/XXXX and XX/XX/XXXX seeking a reply and resolution to this issue ; I got a reply on XX/XX/XXXX from Gemini support requesting further info; On XX/XX/XXXX, I sent Gemini support the info they requested along with another complaint from myself for a resolution of this issue. I did not get a response from Gemini support until XX/XX/XXXX, in which they requested even more information ; I sent this info to Gemini support on XX/XX/XXXX, along with a complaint about how incredibly frustrating and drawn out this process has been for me and that I want a resolution as soon as possible ; I then got a response from Gemini support on XX/XX/XXXX asking for clarity and info for a very specific transaction. I eventually tracked down this information and provided all the details of this transaction from start to finish to Gemini support on XX/XX/XXXX. In this XX/XX/XXXX email I also stated that at the beginning of Tuesday XX/XX/XXXX, I will make a formal complaint to the CFPB to have this issue resolved. Additionally, I told Gemini support I hoped they could resolve this issue before I filed my first CFPB complaint ; I finally did file my first CFPB complaint on XX/XX/XXXX. 

After all this, on XX/XX/XXXX, I received an email from Gemini support telling me my account will be closed in 5 days upon the receipt of this email. They said no withdrawals of crypto assets will be allowed and that only the sale of my crypto assets are permitted. The email also stated, I will have to sell my crypto assets into my chosen XXXX currency ( USD ) for withdrawal to my linked bank account. This is the only way I can regain access to my capital that I invested in my crypto assets. Gemini support stated that the reason for the closure of my account is confidential and that XXXX ' will not be able to elaborate any further. 

I believe this forced sale of my long held crypto assets to XXXX could possibly be a sizable taxable event. Not only could I pay additional taxes on long term capital gains if I were to sell but it can also increase my Adjusted Gross Income ( AGI ) which could cause me to realize an extra XXXX percent tax called the Net Investment Income Tax ( XXXX ). Not to mention, I would incur further costs in the form of exchange fees upon the sale of my crypto assets on Gemini exchange. It is no way warranted for Gemini to do so. Especially when Gemini support on XX/XX/XXXX stated they can not give the reasons for doing so and that it is confidential and 'Gemini ' will not be able to elaborate any further. 

I put my XXXX XXXX and XXXX XXXX on Gemini because I felt it was a safe and secure place to hold my assets so that I could utilize the Gemini Earn platform which I had been using since Summer of XXXX. It behooves me that Gemini is now forcing a sale of my valued crypto assets that I have been accumulating since XXXX. 

XXXX assets are considered property and taxed as such by the US Government. These assets are my property and I have paid taxes in past years on this property. They have no right to force a sale of my property nor withhold from me the possession of my property that is fully paid for and that which is not theirs. I hope this feedback about my situation with Gemini will help bring about the return of my crypto assets to myself. 

I hope this complaint can help in the return of my crypto assets to myself. 

I have included attached the emails of my correspondence with Gemini support.

Company response to consumer: Closed with explanation