Arbitrator Clears Gemini Over Earn Collapse, but Interest Claims Remain Open

An arbitrator has sided with Gemini in a dispute stemming from the collapse of its Earn program, ruling that the exchange functioned as an intermediary connecting users to Genesis rather than as a direct lender. The decision narrows the scope of liability for Gemini in the fallout from Genesis's 2022 bankruptcy, which left Earn depositors unable to recover their funds. However, the arbitration does not fully resolve all claims related to accrued interest owed to users during the program's operation, leaving that question unresolved.

The ruling hinges on a contractual interpretation: whether Gemini bore responsibility as a principal lender or merely facilitated transactions between users and the Genesis lending platform. The arbitrator's acceptance of Gemini's agency argument represents a significant win for the exchange, though ongoing disputes over interest payments suggest the matter is not entirely settled.

• An arbitrator determined Gemini acted as an agent rather than lender in its Earn program, limiting its liability in the Genesis collapse fallout.
• Interest claims owed to users remain an open question and have not been resolved by this ruling.
• The decision narrows but does not fully close legal exposure for Gemini related to the failed lending product.