Gemini cleared in Earn arbitration; interest claims unresolved

Gemini was cleared of liability in the Earn program collapse. Arbitration found no deception or negligence. Users recovered principal, but interest claims are still pending.

Gemini has secured a notable legal win after the collapse of its Earn lending program. In August, an arbitrator ruled that Gemini neither misled users nor acted negligently in evaluating Genesis Global Capital, its primary partner in the program. This decision came in response to a lawsuit filed by a user in late 2024. The arbitrator dismissed claims for emotional damages, finding insufficient evidence of breach of duty or a direct connection between Gemini’s actions and the alleged harm. The Earn program, launched in 2021, offered up to 7.4% annual yield by lending cryptocurrencies through Genesis. Withdrawals were suspended in November 2022, affecting over 300,000 users. By June 2024, users had recovered their principal assets. However, claims regarding unpaid interest remain unresolved, and Gemini continues to face other lawsuits related to Earn and from the State of New York.