SEC Drops Gemini Case for Good After Earn Repayments
In a significant development for the crypto industry, the SEC has dropped the Gemini case related to the Earn program after full repayments were made to users. The SEC’s decision to drop the Gemini Earn case comes after Earn users received full in-kind crypto repayments via Genesis bankruptcy proceedings, marking a major turning point in the regulatory landscape.
Court Filing Ends Gemini Earn Dispute
Court filings in the U.S. District Court for the Southern District of New York reveal that the SEC dismissed the Gemini Earn lawsuit “with prejudice,” preventing any future refiling of the case. This decision follows the completion of crypto repayments to Earn users through Genesis Global Capital’s bankruptcy process. The initial lawsuit, filed in January 2023, scrutinized the Gemini Earn program, which allowed users to earn interest by lending crypto. You can follow similar events on CoinDesk.
Key Details of the Dismissal
- The SEC and Gemini submitted a joint stipulation to dismiss claims of unregistered securities offerings.
- A federal judge’s approval is still pending, but the filing indicates a near conclusion to the dispute.
- Genesis previously settled with the SEC by agreeing to pay a $21 million penalty.
Investor Repayments Drove the SEC Decision
The SEC directly attributed its decision to dismiss the case to the successful investor restitution achieved during the Genesis bankruptcy. Gemini Earn users received a full return of their crypto holdings by mid-2024, specifically between May and June 2024. As interest in crypto soars, it’s essential to have a beginners guide at hand for easy reference.
Gemini further supported customer recoveries by agreeing to contribute up to $40 million. The regulator acknowledged that these returned assets significantly mitigated investor harm. Genesis ultimately returned approximately $2 billion in crypto assets to customers, including around $900 million tied to nearly 340,000 Gemini Earn users. These funds had been frozen since late 2022 following Genesis’s exposure to FTX losses. For more information about the underlying tech, check out basic blockchain information on The Crypto Information.
Gemini’s Contribution
- Gemini contributed up to $40 million to support customer recoveries.
- Returned assets significantly reduced investor harm.
- Gemini resolved related matters with state regulators, including those in New York.
Background and Broader Enforcement Context
Gemini launched Earn in December 2020 in partnership with Genesis, an affiliate of Digital Currency Group. Withdrawals were halted in 2022 amidst market turmoil following FTX’s collapse, leading to extensive litigation and regulatory scrutiny. This situation underscores the importance of understanding why Bitcoin still matters.
Since January 2025, the SEC has dropped or narrowed several crypto cases, affecting firms like Binance, Kraken, Uniswap, Immutable, and Robinhood. Asset recovery has been a key factor in these enforcement reversals. The trend in Bitcoin ETF inflows suggests a possible change in regulatory perspective.
Gemini, founded by Tyler and Cameron Winklevoss, completed Earn repayments before the dismissal, marking a positive step towards resolving the issues stemming from the 2022 market turmoil. Keep up with the latest Crypto Information
