The US Securities and Exchange Commission has agreed to dismiss its enforcement lawsuit against the cryptocurrency exchange Gemini, founded by billionaire twins Tyler Winklevoss and Cameron Winklevoss, after investors in its lending program recovered their assets in full.
Court filings in Manhattan show the SEC and the exchange, formally known as Gemini Space Station, jointly moved to end the case, citing the complete return of crypto assets to Gemini Earn customers through the Genesis Global Capital bankruptcy process in 2024. The regulator had already signalled last year that it intended to resolve the matter once investors were made whole.
The decision comes amid a broader shift in the SEC’s approach to crypto enforcement under President Donald Trump, whose administration has taken a more industry-friendly stance. Trump pledged to support the mainstream adoption of digital assets, reversed tougher regulatory policies from the Biden era, and has openly backed the crypto sector.
The case dated back to 2023, when the SEC charged Gemini and Genesis Global Capital with illegally offering unregistered securities through the Gemini Earn program. Under the scheme, customers loaned their crypto to Genesis in exchange for interest. About $940m in assets were frozen when Genesis halted withdrawals in November 2022.
Unlike many firms caught in the 2022 crypto market crash, Genesis ultimately returned customers’ crypto in kind rather than liquidating assets for cash repayments. A separate case brought by New York’s attorney general ended in a $50m settlement and a ban on Gemini operating a crypto lending program in the state.
In its filing, the SEC stressed that dismissing the Gemini case did not set a precedent for other enforcement actions. Gemini, which made a strong Nasdaq debut last year, is now valued at about $1.14bn, highlighting renewed investor optimism in the digital asset sector.
