BlockFi Crypto Lending Account Customer Goes After Gemini

The founders and two other directors of now-bankrupt BlockFi Inc., along with its alleged partner Gemini Trust Co., should be held liable for digital assets lost while in BlockFi investment accounts, an account holder says in a proposed class suit.

The unregistered “BlockFi Interest Accounts” meet the definition of securities, plaintiff Trey Greene says. BlockFi “was one of the largest offerors and sellers of unregistered securities in the form of yield-bearing accounts to residents of the United States and other countries,” he says in the complaint, filed Tuesday in the US District Court for the District of New Jersey.

Founders ...