The US Securities and Exchange Commission (SEC) has officially closed its civil case against Gemini
$401.28M
Trust Company and Genesis Global Capital.
The case, which focused on claims that the firms’ Earn program involved unregistered securities, was dismissed with prejudice.
A filing in the US District Court for the Southern District of New York confirmed that both sides agreed to end the case.
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The joint request to dismiss still requires a judge’s signature, but it marks the effective conclusion of the regulator’s complaint over Gemini’s lending partnership with Genesis.
The SEC first paused the lawsuit in April 2024 while Mark Uyeda was acting chairman. That pause gave the related Genesis bankruptcy process time to resolve issues for users of the Earn program.
According to the filing, the SEC accepted the dismissal after investors in Gemini Earn received the full amount of their crypto back through the Genesis bankruptcy case.
Gemini also agreed to contribute up to $40 million to make sure the repayments were completed. Genesis had previously settled its part of the case and agreed to pay a $21 million penalty.
The SEC initially brought the lawsuit in January 2023 against Gemini, led by Cameron and Tyler Winklevoss, and Genesis.
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