Gemini wins arbitration over claims tied to failed Earn program

Gemini won an arbitration ruling earlier in August after an Earn customer failed to establish that the crypto exchange misled users or neglected its due diligence when working with Genesis Global Capital. The claim, filed in late 2024, sought damages tied to emotional distress following the collapse of Gemini’s Earn lending program. In its Aug. 12 decision, the arbitrator said the claimant provided no evidence of a breach of duty, a direct connection between Gemini’s conduct and the alleged harm, or an actual or perceived threat to physical safety. CNBC was first to report the ruling. Gemini launched Earn in 2021, allowing customers to earn as much as 7.4% annually by lending their crypto through Genesis to institutional borrowers. The program unraveled in November 2022 when Gemini suspended withdrawals after Genesis froze new loan originations and redemptions during a market-wide liquidity crisis. More than 300,000 users were affected, leading to a series of lawsuits and claims against Gemini, including a case by New York Attorney General Letitia James that ended in a $50 million settlement in 2024. The exchange announced a settlement in principle with Genesis and other creditors ...