Arbitrator Clears Gemini in Earn Collapse Claim After $2.18 Billion User Recovery
Updated
Updated · CNBC · Aug 31
Arbitrator Clears Gemini in Earn Collapse Claim After $2.18 Billion User Recovery
1 articles · Updated · CNBC · Aug 31
Summary
An Aug. 12 arbitration ruling found Gemini did not mislead Earn users or fail due diligence on Genesis, rejecting a late-2024 claim tied to the lending program’s collapse.
The arbitrator said the claimant offered insufficient evidence for negligence and no proof of an actual or perceived threat to physical safety, undercutting the emotional-distress claim.
Earn, launched in 2021 with yields of up to 7.4%, froze withdrawals in November 2022 after Genesis halted loan originations and redemptions during the crypto market downturn.
Gemini has still faced broader fallout: New York settled its Earn case for $50 million in 2024, while users recovered $2.18 billion in assets by May 2024 and more than a dozen disputes remained this month.