Gemini Wins Arbitration Support, Not Responsible for Earn Lending Program Collapse

Gemini Space Station won a legal victory in August, with arbitrators ruling that the cryptocurrency exchange did not mislead users and is not liable for the collapse of its Earn lending program. The claim was filed by a user of the Earn lending program from the digital asset company at the end of 2024. The ruling indicated that there was insufficient evidence to prove that Gemini lied to customers or was negligent in its due diligence with its main lending partner, Genesis Global Capital. The Earn program was launched in 2021, allowing users to earn up to 7.4% annual returns by lending cryptocurrency. Gemini suspended withdrawals from the Earn program in November 2022, leading to dissatisfaction among some users. This move came shortly after Genesis paused new loan issuance and redemptions due to a downturn in the cryptocurrency market. After the freeze on Earn withdrawals, several customers filed legal complaints against Gemini, and the New York Attorney General also sued Gemini over the Earn program, reaching a $50 million settlement with the company in 2024. In February 2024, Gemini announced that it had reached a principled settlement with Genesis and other creditors regarding Genesis's bankruptcy case, and three months later, Earn users received $2.18 billion in digital assets in kind, approximately 97% of the owed digital assets.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.