Arbitrator Rules Gemini Not Liable for Collapse of Earn Lending Program
An arbitrator has ruled that cryptocurrency exchange Gemini (NASDAQ: GEMI) is not at fault or liable for the collapse of its Earn lending program. The decision came in response to a legal claim filed by investors following the program's failure, which occurred after Genesis, Gemini’s partner, halted loan originations due to liquidity issues and was later fined $38.5 million by the SEC. The arbitrator found no evidence that Gemini misled users or failed to conduct proper due diligence. The Earn lending program allowed customers to earn up to 7.4% annual interest on their crypto holdings but was suspended in 2022, causing significant user backlash and legal action. In February 2024, Gemini settled with Genesis and repaid $2.18 billion of digital assets to investors. Gemini had previously reached a separate settlement with the New York Attorney General for $50 million over unrelated issues.
Topics: cryptocurrency Earn lending program fraud Gemini Genesis liability