SEC to dismiss Gemini Earn lawsuit with prejudice after full investor recovery, ending three-year battle
The SEC is dismissing its lawsuit against Gemini over the Earn program following 100% investor recovery.Summary
The U.S. Securities and Exchange Commission (SEC) has filed a joint stipulation to dismiss its civil enforcement action against Gemini Trust Company regarding the Gemini Earn crypto lending program, with prejudice. This decision stems from the complete recovery of assets for Gemini Earn investors, which occurred through Genesis Global Capital's bankruptcy proceedings between May and June 2024, resulting in a 100% in-kind return of crypto assets. The SEC also considered settlements involving Gemini with state regulators. The dismissal with prejudice permanently closes the case, which began in January 2023 when the SEC charged Gemini and Genesis with operating an unregistered securities offering after the program froze in November 2022, locking up about $940 million. This action aligns with a trend of the SEC dropping enforcement cases under Chairman Atkins, though the agency noted this does not set a precedent for other cases.
(Source：The Block)