Gemini Earn Users Lose Savings in ‘White Collar Robbery’

In an email sent out to retail users, Gemini wrote that it terminated the Master Loan Agreement between Earn users and Genesis as of Jan. 8

article-image

Christian Horz/Shutterstock.com modified by Blockworks

share

Gemini, the centralized cryptocurrency exchange founded by the Winklevoss twins, has terminated its Earn program after Genesis Global Capital failed to return more than $900 million in assets owed.

In an email sent out to retail users, Gemini wrote that it had terminated the Master Loan Agreement (MLA) between Earn users and Genesis as of Jan. 8. Gemini co-founder Cameron Winklevoss had previously set the date as a deadline for Genesis’ parent company, Digital Currency Group (DCG), to respond to an open letter published on Jan. 2, regarding the untenable status quo.

“This officially terminates the Earn Program and requires Genesis to return all assets outstanding in the program,” the email said. “Existing redemption requests are not impacted and continue to await fulfillment by Genesis.”

Although Gemini has assured customers that the return of their funds “remains our highest priority,” many users have lost faith in recovering lost savings.

One Reddit user who goes by the pseudonym New_Tour_5064 wrote that they had previously viewed Gemini Earn as similar to a 401(k) retirement plan and was unaware of the situation before it was too late.

“That being said I was completely oblivious as to what was going on in the crypto world as of late and didn’t even know my funds were froze[en] until it was too late,” he wrote. “I’m assuming [there] are a lot more like me.”

Users on Twitter have also speculated as to what, if any, funds Earn customers may be able to retrieve. 

Based on the terms and conditions highlighted in an authorization agreement — digital assets will leave Gemini’s custody and customers must “accept the risk of loss associated with loan transactions.”

Loading Tweet..

Although this may absolve Gemini from being legally liable for Earn users’ losses, Redditor Ok-Hornet-1313 wrote that the situation “feels like white collar robbery.”

“Just like ‘hey give us your money and we’ll have fun with it until the market goes bad, then whoopsie sorry you can’t get your money back but thanks for letting [us] play with your money anyway’,” the user wrote. 

In an attempt to return customer funds and restore the exchange’s reputation, Gemini co-founder Cameron Winklevoss accused DCG founder Barry Silbert of failing to act, tweeting “you hide behind lawyers, investment bankers, and process…your behavior is not only completely unacceptable, it is unconscionable.”

When no resolution was reached by the Sunday deadline, he called on the board of DCG to remove Silbert from his position as CEO. 

“There is no path forward as long as Barry Silbert remains CEO of DCG,” Winklevoss wrote.  

Gemini, DCG and Genesis have not responded to Blockworks’ request for comment.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

🚀 Build What’s Next — Permissionless IV Hackathon Join us June 22–23 in Brooklyn for the Permissionless IV Hackathon — a 36-hour sprint hosted by Cracked Labs and Blockworks where top builders turn ideas into real products. Come to launch, not just […]

recent research

Research Report Templates (10).png

Research

Kamino has evolved into a full-stack asset scaling suite with V2: unlocking new markets, improving capital efficiency, and catering to various risk profiles. We believe it is best positioned to become the credit backbone of Solana as the ecosystem matures. Simply put, KMNO remains our highest-conviction bet in the Solana ecosystem. This report lays out our thesis.

article-image

Greenwood was a success story before it was a tragedy

article-image

All eight included staking in their most recent SEC filings

article-image

With an updated Summary of Economic Projections, the Fed sees growth slowing and inflation increasing

article-image

Where do crypto mobile games go from here?

article-image

Bybit’s Byreal, Binance Alpha and Coinbase’s DEX integrations

article-image

This isn’t the worst hack to ever hit Mt. Gox, but it could be the most entertaining