Gemini Cuts Crypto Earn + Wants Silbert to Resign


May 16, 2023

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Gemini has terminated its flagship Earn program as part of its ongoing public spat with cryptocurrency lender Genesis. The American-based crypto exchange said it was winding up the plan to get Genesis to pay back the $900 million it owes Gemini customers in an email addressed to customers on Tuesday

"We are writing to inform you that the Master Loan Agreement (MLA) between you and Genesis Global Capital, LLC (Genesis) has been terminated, effective as of January 8, 2023, by Gemini, acting as your agent."

The message continued by stating that Earn had been formally terminated and that Genesis was now required to restore all remaining assets to the program.

For Gemini's Earn program, which allowed customers to earn up to 8% interest on their cryptocurrency, Genesis served as the main partner. However, the platform stopped accepting withdrawals in November of last year. As Gemini scrambles to find a means to refund assets to users, customers can now view their Earn amounts as "Pending balances."

In the email, it was said that "the restoration of your assets remains our highest priority and we continue to operate with the utmost urgency."

Co-founder of Gemini wants Barry Silbert to resign

The letter, which demanded that Gemini's founder Barry Silbert resign, was sent on the same day that co-founder and president Cameron Winklevoss of Gemini shared his most recent letter to the board of Genesis owner DCG. This most recent open letter included a charge of accounting fraud against DCG and Genesis, repeating a charge Gemini made in court documents on the same day in response to a class action lawsuit launched by its own users.

In response to Winklevoss' letter, DCG—which also owns the cryptocurrency investor Grayscale Capital, the cryptocurrency app Luno, and the media company Coindesk—called it a "desperate and unproductive publicity stunt" intended to "deflect the blame from himself and Gemini, who alone are responsible for the operation of Gemini Earn."