Gemini Has Ended Its Earn Program And Asks Genesis To Refund All Locked Assets

Key Points:

• Gemini has ended its Earn Program after nearly two years of operation.
• The war broke out when DCG and Genesis Owner Barry Silbert repeatedly delayed action.
• Gemini is asking for their total collateral to be repaid upon the termination of the partnership.

In the latest announcement on the website, Gemini has ended its crypto yield product. Gemini ended the master loan agreement (MLA) between its customers and Genesis.

“This officially terminates the Earn Program and requires Genesis to return all assets outstanding in the program(…). Existing redemption requests are not completed and continue to await fulfillment by Genesis.”

Gemini told customers in an email on Tuesday.

A Genesis official issued a statement that the company “does not agree with all of Gemini’s claims” and expressed disappointment that Gemini is “conducting a public media campaign despite ongoing beneficial private dialogue between the parties.” The statement said, “We are dedicated to moving as quickly as possible, but this is a very complex process that will take additional time.

Following the bankruptcy of FTX, the loan division of cryptocurrency broker Genesis ceased customer withdrawals in November. It was locked up with customer money from Gemini Earn. Gemini Earn billed as an interest-earning account for bitcoin deposits, was introduced in February 2021, and genesis provided the yield investors in Gemini Earn got.

Gemini’s termination took effect on January 8. The firm had earlier given CEO Barry Silbert of DCG, Genesis’ parent company, a deadline of January 2 in a public letter. Additionally, Silbert was charged in the letter with “engaging in bad faith stall tactics” during discussions.

As was updated in a previous Coincu News article, on January 10, Gemini co-founder Winklevoss wrote another public letter calling for the decision to resign from Silbert and accusing DCG and Genesis of committing crimes of accounting fraud. The fraud allegation resurfaced in a lawsuit Gemini filed in court that same day in response to a class action lawsuit brought by Gemini Earn customers.

Immediately after the resignation request was made, Silbert also wrote a letter to his shareholders to clarify the situation of DCG and Genesis. Still, there needed to be a mention of offering a solution to the increased debt of up to $900 million for Gemini.

Customers had agreed to “arbitrate any claims related to the Gemini Earn program” and that plaintiffs’ claims and causes of action “should not be tried in any venue Genesis is joined,” so Gemini further stated all claims in the lawsuit.

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