The US Securities and Exchange Commission (SEC) has agreed to dismiss its enforcement case against Gemini Space Station, a cryptocurrency exchange founded by billionaire twins Tyler and Cameron Winklevoss. The move follows the full recovery of assets by investors in the Gemini Earn lending program.
The SEC and Gemini filed a joint stipulation in federal court in Manhattan, citing the complete return of crypto assets to Gemini Earn investors through the Genesis Global Capital bankruptcy process between May and June 2024. The SEC had decided to resolve the lawsuit last year.
In 2023, the SEC charged Genesis Global Capital and Gemini Trust Company with illegally selling securities to hundreds of thousands of investors through their crypto lending program. Gemini customers loaned their crypto to Genesis and received interest payments; the total value of Gemini Earn assets was $940m when Genesis froze accounts in November 2022.
The New York state attorney general secured a $50m settlement from Gemini, which was banned from operating a crypto lending program in New York. Genesis was able to return customers' crypto in kind rather than liquidating assets.
The SEC stated that after the full return of assets and settlements, dismissal of claims against Gemini is appropriate, but emphasized that this decision does not reflect its position on any other case. The exchange, now valued at $1.14bn, made a strong Nasdaq debut last year.
