Gemini Cleared of Liability in Earn Program Collapse

Arbitrator rules in favor of Gemini, stating the company is not responsible for the collapse of its Earn program. The program promised users yields of up to 7.4% APY before it halted redemptions in November 2022, leaving around 340,000 users locked out of approximately $940 million to $1 billion in digital assets.

Gemini launched Earn in February 2021, and the program allowed users to deposit their Bitcoin, Ether, or other assets with Genesis Global Capital. GGC would then pay interest on those deposits, but it couldn't meet its obligations when the crypto credit crisis accelerated following FTX's collapse. Gemini terminated the Earn program entirely in January 2023.

The arbitrator's decision addresses the central legal question: was Gemini negligent or did the company commit fraud by operating the Earn program? The ruling states that Gemini acted as an agent connecting users to Genesis, not as the direct lender.

GGC's bankruptcy proceedings are structured to provide a full in-kind recovery of digital assets to former Earn participants. To facilitate this outcome, Gemini agreed to contribute between $40 million and $50 million toward the settlement. The SEC dismissed its enforcement action against Gemini in January 2026, citing the full asset recovery as the primary reason for stepping back.