Consumer complaint received 2022-12-17 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Money was not available when promised — 
Company: Winklevoss Exchange LLC
State: NY

Complaint narrative:
On XX/XX/XXXX I requested a redemption of my virtual currency through Gemini 's Earn program, which gauranteed a XXXX-day SLA for redemptions from it's borrowing partner - XXXX XXXX  XXXX XXXX XXXX XXXX The total amounts with corresponding values as of XX/XX/XXXX were as follows : XXXX : XXXX XXXX valued at {$1100.00} Ether : XXXX ETH valued at {$3300.00} XXXX : XXXX LINK valued at {$140.00} Gemini Dollar : {$6300.00} GUSD valued at {$6300.00} USD, which - in all marketing, communications, and user agreements- Gemini claims to be a XXXX backed by XXXX USD reserves deposited in a combination of FDIC-backed banks, US Treasury Bills , and XXXX XXXX XXXX and independently verified by a third-party agency. 

The last published report as of XX/XX/XXXX by XXXX XXXX XXXX and undersigned by XXXX XXXX ( CEO/President of Gemini Trust Company LLC ) on XX/XX/XXXX stated that Gemini 's total holdings for XXXX issued was {>= $1,000,000} and that they were in compliance with item XXXX ( a ) of the XXXX XXXX letter dated XX/XX/XXXX regarding guidance on issuing USD-backed XXXX 

On the same day I requested a withdrawal of my funds, XXXX ( the borrower ) of my funds through Gemini 's custodian platform announced delays in withdrawals for all customers, and so failed to meet their XXXX SLA. It has now been over XXXX days and XXXX has yet to declare the loans as in default, as outlined in section VII of the Gemini Earn User Agreement, which is noted as follows : -- -- -- -- -- -- -- -- -- - VIl. Default It is further understood that any of the following events shall constitute an event of default hereunder against the defaulting Party, and shall be herein referred to as an " Event of Default ' '' or " Events of Default '' : ( a ) the failure of the Borrower to return any and all Loaned Assets upon termination of any Loan however, Borrower shall have XXXX Business Days to cure such default ; ( b ) the failure of Borrower to pay any and all Loan Fees Late Fees, or to remit any New Tokens in accordance with Section V, however, Borrower shall have XXXX Business Days to cure such default ; ( c ) a material default by either Party in the performance of any of the other agreements, conditions, covenants, provisions or stipulations contained in this Agreement, including without limitation a failure by either Party to abide by its obligations in Section IV or V of this Agreement and such Party 's failure to cure said material default within XXXX Business Days ; ( d ) any bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors or dissolution proceedings that are instituted by or against a Party and are not be dismissed within XXXX ( XXXX ) days of the initiation of said proceedings ; or ( e ) any representation or warranty made by either Party in this Agreement that proves to be incorrect or untrue in any material respect as of the date of making or deemed making thereof however, a Party shall have ten Business Days to cure such default. ( f ) any representation or warranty of Custodian in Exhibit A proves to be incorrect or untrue in any material respect as of the date of making thereof or during the term of any Loan, or Custodian shall fail to perform in any material respect Custodian 's covenants in Exhibit A, which shall be deemed an Event of Default by Lender, provided, however, Custodian shall have ten Business Days to cure such default.

-- -- -- -- -- -- -- -- -- I firmly believe that XXXX is in default based on VII ( d ) as they have hired an outside party to begin " bankruptcy, insolvency, reorganization or liquidation proceedings '', as well as sections ( c ) regarding material default of terms and sections ( XXXX ) and ( f ) regarding material misrepresentations of warranty and claims regarding the loans. 

I believe that Gemini should have terminated the agreement by now and proceeded to enact the Remedies outlined in sections VIII and XXIII of the Gemini Earn User Agreement, including immediate return of all outstanding GUSD holdings to their customers based on their secured collateral. 

I request an investigation into this for myself and other customers affected by this matter. 

-- -- -- -- -- -- -- VIll. Remedies ( a ) Upon the occurrence and during the continuation of any Event of Default on a Loan by Borrower, the Custodian acting on behalf of the Lender may, at its option : ( XXXX ) declare the entire Loan Balance outstanding for the Loan hereunder immediately due and payable ( XXXX ) transfer any Collateral for a Loan from the collateral account to Custodian 's operating account to hold on behalf of itself and the Lender, to the extent necessary for the payment of any nonpayment, liability, obligation or indebtedness created by the Loan ; and/or ( XXXX ) exercise all other rights and remedies available to the Lender hereunder, under applicable law, or in equity. lf any Event of Default by Borrower under Sections VII ( a ) or ( b ), persist for thirty days or more, or immediately upor an Event of Default by Borrower under Sections VIlO or ( d ), the Custodian acting on behalf of the Lender may, at its option, ( 4 ) terminate this Agreement and any Loan hereunder upon notice to Borrower ( b ) Upon the occurrence and during the continuation of any Event of Default on a Loan by Lender or Custodian the Borrower may, at its option exercise all other rights and remedies available to the Borrower hereunder, under applicable law, or in equity. If any Event of Default by Lender under Section VIl ( XXXX ) persist for thirty-days or more, or immediately upon an Event of Default by Lender under Sections VIl or ( d ), the Borrower may, at its option, terminate this Agreement and any Loan hereunder upon notice to Lender. o In addition to its rights hereunder, the non-defaulting Party shall have any rights otherwise available to it under any other agreement or applicable law ; however, the non-defaulting Party shall have an obligation to mitigate its damages in a commercially reasonable manner.

XXIll. Term and Termination This Agreement may be terminated by any Party by providing thirty days ' written notice to the other Parties. In the event of a termination of this Agreement, any Loaned Assets shall be redelivered immediately and any fees owed shall be payable immediately.

Company response to consumer: Closed with explanation