Consumer complaint received 2022-11-29 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: NH

Complaint narrative:
This complaint is in regard to the recent events at the Gemini XXXX XXXX, their relationship to XXXX, and Geminis uncollateralized use of retail investor funds for XXXX XXXX schemes under the Gemini Earn product. 

Gemini XXXX ( Based out of New York ) touts itself as being a highly-regulated crypto exchange, with crypto ( XXXX, their stable coin ) being backed 1:1 ( {$1.00} USD to XXXX GUSD ) and FDIC insured XXXX they also possess a Bit License from the state of New York XXXX Despite the overall volatility of crypto, the Gemini XXXX is trusted and is one of the dominant industry players in the United States. Within Gemini 's investing programs and products is the Gemini Earn program where users can purchase crypto with USD from their exchange and then enter that crypto into Gemini XXXX where percentage yields can be earned based upon the rates established per cryptocurrency. The rates are set by a third-party lending partner, XXXX, who manages this lending program through Gemini. On XX/XX/XXXX, XXXX halted withdrawals due to liquidity issues, assumed to be related to the XXXX fallout. Gemini has an XXXX to return XXXX funds to users within 5 days of redemption. On XX/XX/XXXX, Gemini emailed XXXX customers noting that they would not be able to meet the 5 day XXXX. At present time Gemini reports to be working with XXXX to find a way to recover Gemini XXXX customer funds. Gemini has not updated customers on status since XX/XX/2022. 

Many customers have been blindsided by this event as Gemini 's XXXX program was considered to be one of the most conservative and safest crypto investment options. Customers believe that the XXXX product was bundled under the auspices of regulation, safety, and trust -- that the extreme level of risk was not fully understood by customers and perhaps not understood by Gemini. Gemini employs a risk management framework to vet third-parties like XXXX but either this framework was not robust enough or not employed with the appropriate frequency. 

I have heard reports that there is somewhere between $ XXXX $ XXXX in funds that are attempting to be recovered by Gemini from XXXX. Personally I have $ XXXX wrapped up in this and potentially lost. Had I known/understood the actual risks I would've never placed my investment with Gemini. There are thousands of customers who have attempted to withdraw their funds from Gemini and, from what I've read online, none of those redemption requests are being fulfilled. There has been commentary/discussion about a class action against Gemini. 

Some customers are going to XXXX XXXX XXXX to discuss what's happening. Some users are reporting that some posts and comments, that are not in the best interests of Gemini 's business, are being withheld or deleted. The Gemini subreddit has also removed the ability to submit posts under the category ( called " flair '' ) of 'Gemini XXXX. ' Gemini XXXX Update XXXX XXXX XXXX XXXXXXXX

Company response to consumer: Closed with explanation