It’s been seven months since the grand opening, and digital currency exchange Gemini already seems to be making a few enemies.
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Gemini is the brainchild of Tyler and Cameron Winklevoss. Earning fame through their lawsuit against Facebook mogul Mark Zuckerberg, they have gone on to build solid names for themselves in the arena of bitcoin and digital currency.
Gemini has many benefits, a big one being that it qualifies as a fiduciary and offers FICO insurance like a standard financial institution. In light of cyber-attacks on fellow platforms such as Bitstamp, Gemini offered the security that several Bitcoin enthusiasts were looking for, but simply couldn’t find. The company opened up to individuals and businesses in 26 states, and it seemed things were off to a good start.
But not everybody’s happy, apparently. User Mike Miescke is busily pointing the finger after completing a bitcoin purchase equaling $2,200, only to later receive an email stating that the transaction was in the process of being reversed. Gemini listed a “customer error” as the reason behind the decision, and Miescke isn’t happy about it at all. He quickly contacted bitcoin press outlets, explaining:
“I immediately responded to this email stating I do not accept their statement of reversal, demanded my account be restored to its rightful balance as laid out in their terms of service, and referenced their terms of service that ‘customer error’ is NOT a valid reason to reverse transactions.”
Gemini has obviously published several rules in its terms of service to protect itself. The company states:
“While we strive to provide you with accurate information, we cannot guarantee that information on Gemini will always be accurate. As a result, we are not liable to you, any other person or any institution 1) for any transaction that is completed; 2) for the price at which you buy or sell Digital Assets on Gemini… We reserve the right to reverse and/or cancel one or more Orders in the event of (i) any disruption or malfunction in the operation of any electronic communications, trading facilities, storage facilities, recording mechanisms or other components of or integral to Gemini or of Digital Assets, or (ii) any other severe business disruption to Gemini, its systems or Digital Assets, where the nullification of transactions may be necessary for the maintenance of a fair and orderly market or the protection of you and the public interest.”
Gemini further states that if business disruption does occur or is a factor in any way, the company has the right to completely void any and all transactions in question.
Most digital currency enthusiasts are labeling this as the primary reason for the transaction’s cancellation, but Miescke isn’t convinced. Unable to see anything in his transaction that meets “disruption qualifications,” he harshly blames Gemini for what he feels was an incorrect reversal:
“If the trade went through, I believe that individual customer who brought the order book up to $2,200 would have a strong reason to file a lawsuit… Written in their terms of service, Gemini says that all orders pass automated checks and may not be flagged if the order meets certain criteria. They do not list the criteria, but you would assume that ‘fat finger’ orders that cause massive slippage would be easily flagged.”
Miescke plans to fight the decision, while Gemini is merely directing others to their blog page, hoping the answers provided will clear up any lasting confusion.
What do you think of Miescke’s plight? Post your comments below!
Images courtesy of techtimes.com, twitter.com