SEC drops Gemini Earn case, closing one of crypto’s longest-running enforcement actions
The U.S. Securities and Exchange Commission (SEC) has dismissed its civil enforcement case against Gemini Trust Company with prejudice, closing one of the longest-running crypto enforcement actions. The lawsuit, originally filed in January 2023, focused on Gemini’s Earn program, which allowed users to lend crypto to Genesis Global Capital for yield. The SEC cited the full in-kind restitution of assets to investors and prior settlements as key reasons for dismissal. The decision does not reflect a shift in broader enforcement policy or establish legal precedent on crypto yield products. It highlights, however, that full customer recovery can be a decisive factor in resolving such cases.
ambcrypto01/23 23:55