Overview
- An arbitrator ruled on Aug. 12 that a late-2024 claim by an Earn user failed to prove Gemini misled customers or breached duty, rejecting claims of emotional-distress damages.
- The claimant offered no evidence of a causal link between Gemini's conduct and the alleged harm and did not show any actual or perceived threat to physical safety, the ruling said.
- Gemini's Earn product, launched in 2021, routed customer crypto to institutional borrowers through Genesis, and Gemini froze Earn withdrawals after Genesis paused loans and redemptions in November 2022.
- Bankruptcy proceedings in 2024 returned roughly $2.18 billion of digital assets to Earn users in kind, about 97% of what was owed, rather than paying cash at 2022 values.
- Gemini previously settled with the New York attorney general for about $50 million and was barred from offering crypto-lending in New York, and more than a dozen separate Earn disputes remain active.