SEC Drops Case After Full Investor Recovery
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The US Securities and Exchange Commission (SEC) has reportedly agreed to dismiss the prolonged Gemini lawsuit. While the case began in the aftermath of the 2022 crypto market collapse, it is now ending with the investors’ full recovery of funds. SEC Drops Gemini Lawsuit, Investors Fully Repaid According to a Reuters report, the US SEC has decided to drop its protracted lawsuit against the Winklevoss Twins’ Gemini. On Friday, the regulator announced the dismissal of the Gemini lawsuit, linked to the exchange’s now-defunct Earn product. The SEC stated that the case is no longer necessary. In a court filing dated January 23, 2026, the SEC and Gemini Trust Company jointly agreed to drop the case permanently. The SEC asserted that the decision was made on its own judgment, with the full repayment of investors playing a key role. The crypto exchange noted that the Gemini Earn investors had fully recovered their crypto assets through the Genesis Global Capital bankruptcy process in May-June 2024. The filing stated, “The 100 percent in-kind return of Gemini Earn investors’ crypto assets through the Genesis Bankruptcy and the settlements noted above, and in the exercise of its discretion, the Commission believes the dismissal of the claims against Defendant is appropriate.” It is worth noting that the Gemini lawsuit dismissal comes on the heels of the platform’s recent milestones. For instance, Gemini received CFTC approval to launch its own prediction markets as major crypto exchanges are exploring similar opportunities. Why the SEC Took Gemini to Court? In 2023, the SEC launched the Gemini lawsuit, alleging that the company illegally sold securities to its investors through its crypto lending platform. As per the case, investors in Gemini’s Earn program had loaned their crypto to Genesis Global Capital, a crypto intermediary that is also named in the lawsuit.…
Filed under: News - @ January 24, 2026 7:24 am