Arbitrator Rules Against User Claiming Fault for Collapse of Gemini’s Earn Lending Program
An arbitrator ruled that crypto exchange Gemini was not at fault for the collapse of its Earn lending program, rejecting a claim filed by one of its users in late 2024. The ruling found insufficient evidence to support allegations that Gemini misled customers or failed to conduct proper due diligence with Genesis Global Capital, its primary lending partner. The Earn program allowed users to earn up to 7.4% annual yields on their cryptocurrencies but was suspended in November 2022 after Genesis halted new loans and redemptions amid a liquidity crisis during the broader crypto market downturn that year. The arbitrator noted there was no proof of physical safety threats or emotional distress caused by Gemini's actions, dismissing claims for negligent infliction. Gemini had already settled with New York’s Attorney General in 2024 over its Earn program and reached a settlement-in-principle with Genesis creditors earlier that year. In late 2024, users received $2.18 billion of their digital assets back—97% of what was owed.
Topics: cryptocurrency Gemini Genesis Global Capital lending_programs