Arbitrator Finds Gemini Not Responsible for Earn Program Collapse

An arbitrator has ruled that Gemini Space Station was not responsible for the collapse of its Earn lending program, finding insufficient evidence that the cryptocurrency exchange misled customers or failed to conduct adequate due diligence on its lending partner, Genesis Global Capital. The decision points to Genesis and its parent, Digital Currency Group (DCG), as responsible for the problems that ultimately brought down Earn.

Gemini launched Earn in 2021, allowing customers to earn annual yields of as much as 7.4% by lending their digital assets through Genesis to institutional borrowers. The ruling does not resolve all of Gemini's legal exposure related to Earn, as more than a dozen customer disputes were still pending earlier this month. Gemini also settled a separate case brought by New York’s attorney general for $50 million in 2024.

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