Gemini secures dismissal with prejudice of SEC civil lawsuit
A mutual agreement between the SEC and Gemini Trust has brought closure to a lawsuit spanning three years related to Gemini's cryptocurrency lending partnership with Genesis Global Capital.
A civil legal action filed by the United States Securities and Exchange Commission targeting Gemini Trust Company alongside Genesis Global Capital regarding unregistered securities in the Earn program has now been dismissed with prejudice.
Documentation filed with the court reveals that both parties presented a joint stipulation for dismissal on Friday at the US District Court located in the Southern District of New York, bringing a definitive conclusion to the SEC's allegations concerning Gemini's cryptocurrency lending partnership with Genesis.
The dismissal was acceptable to the SEC following the complete in-kind restitution of crypto assets to Gemini investors at 100% through Genesis bankruptcy proceedings that concluded in mid-2024, combined with Gemini's commitment to provide up to $40 million toward ensuring the full recovery of all cryptocurrency holdings for Gemini Earn participants.
The regulator found the dismissal satisfactory due to the complete in-kind recovery of cryptocurrency assets belonging to Gemini Earn investors via the Genesis bankruptcy process in mid-2024, a resolution that featured Gemini's pledge to contribute as much as $40 million to facilitate the total restoration of client holdings.
The regulatory action was initially launched against the Winklevoss-operated Gemini and Genesis in January 2023, during the tenure of the Biden administration, a period marked by an escalation in cryptocurrency-related legal proceedings and regulatory inquiries as authorities intensified their oversight of the digital asset sector.
SEC continues to drop cases
The Gemini case represents another addition to an expanding roster of cryptocurrency-related legal actions that federal government entities have withdrawn since the Trump administration assumed office in January 2025, having pledged to reduce regulatory constraints on the industry.
This is a developing story, and further information will be added as it becomes available.