In August, an arbitrator ruled in favor of Gemini Space Station, stating that the company did not mislead users regarding its Earn lending program, which had faced significant issues leading to a halt in withdrawals in November 2022. The ruling came after a claim was filed by a user who alleged emotional distress due to the program's collapse.
The arbitrator found no evidence that Gemini had breached any duty to its customers or that it had failed to conduct due diligence with its lending partner, Genesis Global Capital. This ruling is crucial as it alleviates some legal pressures on Gemini, which had already faced a lawsuit from the New York Attorney General and settled for $50 million in 2024.
Following the Earn program's suspension, Gemini managed to return approximately $2.18 billion to users, representing 97% of the owed digital assets. Despite this victory, Gemini still faces ongoing disputes from other Earn customers, indicating that the situation remains complex and could continue to affect the company's reputation and operations in the crypto market