Three users of Crypto exchange Gemini's Earn program have reportedly filed a request for class-action arbitration against Genesis Global Capital and Digital Currency Group.

The request, which is not to be confused with a class-action lawsuit, comes weeks after the Winklevoss-founded exchange suspended Earn redemptions — a direct consequence of Genesis freezing withdrawals.

The three claimants allege that the terms of Gemini Earn's master agreement were broken when Genesis purportedly failed to disclose — and later concealed — its insolvency in the summer, CoinDesk reported. 

They also allege that Genesis worked with its parent company, Digital Currency Group, to hide its insolvency by exchanging $2.3 billion in debt owed by collapsed crypto hedge fund Three Arrows Capital for a $1.1 billion promissory note due in a decade.

Furthermore, the claimants believe Genesis' master agreement creates the unregistered sale of securities.

(By Adam James)