- The Securities and Exchange Commission mentioned that the decision was made using its own judgement.
- For resolving the situation, Gemini contributed around $40 million in Bitcoin and $10 million in other assets.
The Securities and Exchange Commission of the United States has officially dismissed its civil lawsuit against Gemini Trust Company. This move indicates a major comfort for the crypto exchange founders Tyler and Cameron Winklevoss.
The decision is followed by Gemini Earn users getting all their crypto back, bringing an end to a long legal case that initiated in 2023. As per the filing of 23rd January 2026, the SEC and Gemini Trust Company came together to drop the case with prejudice, which means it can’t be opened in the future.
The Securities and Exchange Commission mentioned that the decision was made using its own judgement, with investor repayment playing a significant role. All Gemini Earn users who were affected got a complete return of their crypto assets. The repayment wasn’t done in cash, and it was completed via the Genesis Global Capital bankruptcy process between May and June 2024.
The SEC further mentioned that after returning users’ crypto completely, the harm to investors was prominently reduced. The regulator also highlighted that Gemini has so far settled associated issues with a lot of state regulators.
The Complete Closure
Amalgamated, these steps backed the decision to completely drop the lawsuit. The case traces back to December 2020, when Gemini collaborated with Genesis, a crypto lending firm associated with Digital Currency Group.
As per this arrangement, Gemini users could lend their crypto to Genesis and get interest payments. Problems initiated when Genesis broke at the time of the wider crypto market downturn.
Withdrawals got frozen, and $900 million in crypto assets were left, associated with around 340,000 users locked and inaccessible. For resolving the situation, Gemini contributed around $40 million in Bitcoin and $10 million in other assets.
It further contributed a $37 million penalty for a different settlement with New York regulators. Gradually, Gemini worked through various legal and regulatory processes at state as well as federal levels, having the complete repayment of users appearing as the prominent milestone in terminating the case.
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Source: https://thenewscrypto.com/sec-drops-civil-lawsuit-against-gemini-trust-company/
