SEC Seeks Dismissal of Gemini Lawsuit After Investors Made Whole

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US regulators have moved to drop their civil case against Gemini Trust Company regarding its Earn product. The SEC filed a joint request for dismissal with prejudice in a Manhattan federal court, signaling an end to the litigation.

This action follows the full restitution of assets to participants in the Gemini Earn program. The SEC cited the bankruptcy proceedings of Genesis Global Capital, through which investors reportedly recovered all of their crypto assets in kind earlier this year.

The Commission stated it exercised its discretion in seeking dismissal, emphasizing the full recovery for investors. It also considered other settlements involving Gemini with state authorities as part of its decision.

By dismissing the case with prejudice, the SEC permanently closes this particular legal challenge, marking the resolution of one of the most notable cases related to crypto lending platforms from the last market cycle. A request for comment to Gemini was not immediately returned.