Gemini Clears Legal Hurdle in Earn Lending Program Dispute
Crypto exchange Gemini has secured a legal victory in its ongoing dispute over the collapse of its Earn lending program. An arbitrator ruled that Gemini was not at fault for misleading users or failing to properly vet its main lending partner, Genesis Global Capital.
The claim against Gemini was filed by an Earn user in late 2024, but the arbitrator found insufficient evidence to support the allegations. The ruling cited a lack of proof that Gemini had lied to customers or neglected due diligence with Genesis.
Gemini's Earn program allowed users to earn up to 7.4% annual yields on their cryptocurrencies by lending them out to institutional borrowers through Genesis. However, in November 2022, Gemini halted withdrawals from the program amidst a liquidity crunch faced by Genesis.