The US Securities and Exchange Commission (SEC) has agreed to drop its case against the crypto exchange Gemini, run by the Winklevoss twins. The case was linked to Gemini’s crypto lending programme called Gemini Earn.
Earlier, the SEC had accused Gemini and its partner company Genesis Global Capital of offering unregistered financial products to customers. Under the Gemini Earn programme, users lent their cryptocurrency and earned interest on it. Problems began in late 2022 when Genesis stopped withdrawals, affecting a large number of investors.
Around $940 million worth of customer funds got stuck after Genesis froze accounts. This caused serious concern among users, many of whom were unable to access their money for months. The issue later went through bankruptcy proceedings.
Over time, Gemini and Genesis worked on a repayment plan. As a result, all affected investors received their full money back. Since customers were fully repaid, the SEC decided there was no need to continue the legal action.
Both the SEC and Gemini submitted documents to a federal court in New York, asking the judge to officially dismiss the case. The filing clearly stated that investor losses had been completely recovered.
The SEC also clarified that this decision applies only to this case. It does not mean a change in its overall stand on crypto regulation. The agency said it will continue to closely watch and act on other crypto-related matters where needed.
For Gemini, the end of the case brings relief after a long legal battle. It is also seen as a positive development for the crypto industry, especially for companies trying to rebuild trust after recent market troubles.
The dismissal marks an important moment, showing that full repayment to investors can strongly influence regulatory decisions.
