Arbitrator Clears Gemini of Liability in Earn Collapse

Ruling pins Earn failure on Genesis fraud; Gemini repaid 97 percent of user assets.

An arbitrator ruled that Gemini did not mislead users and bears no liability for the collapse of its Earn lending program.

The decision attributes the failure to massive fraud by Genesis, the institutional partner that received the lent assets.

Gemini has already repaid $2.18 billion, or 97 percent of the assets owed to Earn users.

Gemini settled with the New York Attorney General for $50 million; Genesis separately paid the SEC $38.5 million.

Open questions

It remains unknown whether the ruling resolves all related claims or whether additional recoveries for remaining users are still possible.