Gemini Cleared Of Responsibility For Earn Program Failure After Arbitrator Decision
TL;DR:
- Gemini won an arbitration filed by an Earn user who failed to prove that the exchange misled its customers.
- The arbitrator determined on August 12 that there was no breach of duties or causal link between Gemini’s conduct and the alleged harm.
- More than 300,000 users affected by the Earn collapse recovered their crypto assets in full by June 2024.
The cryptocurrency exchange Gemini obtained a favorable ruling in an arbitration proceeding initiated in late 2024 by a user of its Earn program who sought damages for emotional distress stemming from the product’s collapse.
In its decision, the arbitrator concluded that the user presented no evidence of breach of duties, of a direct link between the exchange’s conduct and the alleged harm, or of a real or perceived threat to their physical integrity. CNBC was the first outlet to report the ruling.
How Gemini Earn Worked and Why It Collapsed
Gemini Earn was a crypto asset lending service launched in 2021 that offered annual interest rates of up to 7.4% on assets such as Bitcoin. Unlike a traditional savings account, the product operated by lending customers’ assets through Genesis Global Capital to institutional borrowers.
… Continue reading the full article at the original source below.
