[Gemini Wins Arbitration, Not Liable for Earn Lending Program Collapse] BlockBeats News, August 31: According to a CNBC report, Gemini Space Station achieved a legal victory in August, with an arbitrator ruling that the cryptocurrency exchange platform did not mislead users and is not responsible for the collapse of its Earn lending program. The claim was filed by a user of the digital asset company's Earn lending program in late 2024. According to the ruling, there was insufficient evidence to prove that Gemini lied to customers or was negligent in its due diligence with its primary lending partner, Genesis Global Capital. The Earn program, launched in 2021, allowed users to earn up to 7.4% annualized returns by lending cryptocurrency. Under the program, Gemini lent assets to institutional borrowers, with Genesis acting as an intermediary. However, Gemini suspended withdrawals from the Earn program in November 2022, angering some of its over 300,000 users. This move came shortly after Genesis paused new loan issuances and redemptions due to a liquidity crisis caused by the crypto market downturn that year. Following the freeze on Earn withdrawals, multiple customers filed legal complaints against Gemini. The New York Attorney General also sued Gemini over the Earn program, reaching a $50 million settlement with the company in 2024. In February 2024, Gemini announced that it had reached a "principled settlement" with Genesis and other creditors regarding the Genesis bankruptcy case. Three months later, Earn users received $2.18 billion worth of digital assets in kind, representing 97% of the digital assets owed to Earn users—$1 billion more than when Genesis suspended withdrawals in 2022. [Original Link]