Gemini wins arbitration ruling over Earn lending program collapse claims

An arbitrator has ruled that crypto exchange Gemini is not at fault for the collapse of its Earn lending program, rejecting a late 2024 emotional distress claim by an individual user. The August 12, 2026, ruling found no evidence that Gemini misled users or failed in its due diligence, pointing instead to massive fraud by partner Genesis Global Capital and DCG's Barry Silbert. While Earn users recovered $2.18 billion in principal, separate arbitrations over unpaid interest remain outstanding.

Arbitration ruling on Earn liability

• ▪The August 12, 2026, arbitration ruling resolved a single claim filed in late 2024 by an individual Gemini Earn user seeking damages for emotional distress.
• ▪An arbitrator ruled on August 12, 2026, that Gemini was not at fault for the collapse of its Earn lending program and did not mislead its users.
• ▪The arbitrator found insufficient evidence that Gemini lied to customers or neglected due diligence regarding its main lending partner, Genesis Global Capital.

Genesis fraud by Digital Currency Group

• ▪Digital Currency Group agreed to pay the Securities and Exchange Commission $38.5 million in January 2025 for misleading investors.
• ▪The arbitrator pointed to Genesis Global Capital and Digital Currency Group's Barry Silbert, alleging massive fraud that went undetected by auditors and regulators.

Outstanding interest payment claims

• ▪Separate arbitrations over unpaid interest promised under the Gemini Earn program, which advertised yields up to 7.4%, remain outstanding.
• ▪Gemini Earn users recovered their principal in kind, with 97% distributed in May 2024 and the remaining 3% in June 2024.

New York regulatory settlements

• ▪Gemini settled with the New York Attorney General for $50 million in 2024 and was barred from running crypto-lending programs in New York.
• ▪Gemini paid a $37 million fine to the New York State Department of Financial Services in February 2024 for failing to vet or monitor Genesis.

SEC securities case dismissal

• ▪The Securities and Exchange Commission dismissed its unregistered securities lawsuit against Gemini and Genesis with prejudice on January 23, 2026.
• ▪The Securities and Exchange Commission cited the 100% in-kind return of investor assets and related settlements as the basis for dismissing the lawsuit.

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