BlockFi’s Major Investor Files Complaint against its Founders & Directors


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Lawsuit against BlockFi's Founders & Directors is filed by the company's largest investor

In the United States District Court for the State of New Jersey, one of the most significant investors in the defunct cryptocurrency lending platform known as “BlockFi” has filed a case against the site’s founders, two directors, and the cryptocurrency exchange known as Gemini.

Plaintiff Trey Greene, whose almost $2 million fund is locked in BlockFi, filed a case against the defendants, accusing them of selling unregistered securities, breaking consumer frauds and exchange statutes, and other offenses. Greene’s investment is stuck in BlockFi.

The following is an excerpt from the filing: “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 the course of several years and through intermittent misrepresentations by Defendant Gemini.”

According to Trey Greene, the creators of BlockFi, Zac Prince and Flori Marquez, gave a misleading representation of their offers by drawing comparisons between them and “unregistered securities,” which are products offered by federally-insured banks.

Trey Greene claims that he put $1.5 million into an interest account, sometimes known as unregistered securities. As a result of his actions, he accrued interest payments totaling $400,000, which he then re-invested in the lending business.

On November 10, 2023, BlockFi stopped allowing customers to make withdrawals, which meant that investors could no longer access their money.

Compiled by Coinbold

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