SEC to Dismiss Gemini Earn Case After $40M Deal, 100% Return
The US Securities and Exchange Commission’s civil case against Gemini Trust Company and Genesis Global Capital over the Earn program has been dismissed with prejudice, according to a joint stipulation filed Friday in the US District Court for the Southern District of New York. The filing seeks to terminate the SEC’s claim regarding Gemini’s crypto lending initiative with Genesis. A federal judge must still approve the joint stipulation before the dismissal is finalized.
The move follows the SEC’s decision in April 2024 to pause the civil action under then-acting chairman Mark Uyeda. In its filing, the SEC cited a 100% in-kind return of Gemini Earn customers’ crypto assets through the Genesis bankruptcy in mid-2024 and Gemini’s agreement to contribute up to $40 million to support the full recovery of those assets. The SEC also noted that Genesis previously resolved its part of the matter by agreeing to pay a $21 million civil penalty.
Extract of the SEC’s joint stipulation to dismiss the case involving Gemini and Genesis. Source: CourtListener
The SEC originally filed the complaint against Gemini and Genesis in January 2023, during the Biden administration, amid heightened enforcement activity targeting the digital asset sector.
SEC case withdrawals continue
The resolution of Gemini’s case adds to a series of crypto-related matters that US agencies have dropped since the Trump administration took office in January 2025, which has pledged to ease regulation of the industry. Cases involving Binance, Kraken, Uniswap, Immutable, and Robinhood are among those cited.
Separately, on Wednesday, the Department of Justice dismissed its nonfungible token insider trading case against former OpenSea senior manager Nathaniel Chastain, following a federal appeals court decision in late July that reversed his wire fraud and anti-money laundering convictions.
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