Business & Finance
Arbitrator finds Gemini not at fault for collapse of Earn lending program
A ruling concluded there was insufficient evidence that the crypto exchange misled users or failed to conduct due diligence regarding its primary lending partner.
The short version
- An arbitrator ruled that crypto exchange Gemini was not at fault and did not mislead customers concerning the 2022 collapse of its Earn yield program.
- The decision dismissed a claim brought by an Earn user who alleged emotional distress and negligence by the exchange.
- More than a dozen individual customer disputes against Gemini regarding the Earn program remain active.
Key facts
- An August 12 arbitration ruling determined Gemini did not mislead users or neglect due diligence with Genesis Global Capital regarding its Earn lending program.[CNBC]
- The dismissed claim was originally filed in late 2024 by an Earn customer seeking damages for negligent infliction of emotional distress.[CNBC]
- Gemini froze withdrawals from Earn in November 2022 after Genesis encountered liquidity issues and paused redemptions.[CNBC]
- Gemini previously agreed to a $50 million settlement with the New York Attorney General in 2024 over the Earn program.[CNBC]
- Earn users received $2.18 billion in digital assets in May 2024 following bankruptcy settlement agreements.[CNBC]
What remains uncertain
- The outcomes of more than a dozen remaining arbitration disputes brought against Gemini by Earn customers remain unresolved.[CNBC]