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

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

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.

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.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

The derivatives giant will extend futures and options access to round-the-clock trading in early 2026

by Blockworks /
article-image

Global fiber network goes live as SEC clears 2Z token for utility use

by Blockworks /
article-image

The SPAC transaction positions Avalanche Treasury Co. as a Nasdaq-listed vehicle for institutional AVAX exposure by 2026

by Blockworks /
article-image

The collaboration brings regulated money market fund exposure to Polygon, with custody provided by Standard Chartered

by Blockworks /
article-image

FG Nexus teams with Securitize to bring its Nasdaq-listed equity onchain, offering tokenized stock trading through Ethereum

by Blockworks /
article-image

Sponsored

Taiko launches binding onchain governance and appoints three directors with expertise in global regulation, business strategy and blockchain tech

by Sponsored /