The post SEC Drops Case After Full Investor Recovery appeared on BitcoinEthereumNews.com. The US Securities and Exchange Commission (SEC) has reportedly agreed The post SEC Drops Case After Full Investor Recovery appeared on BitcoinEthereumNews.com. The US Securities and Exchange Commission (SEC) has reportedly agreed

SEC Drops Case After Full Investor Recovery

The US Securities and Exchange Commission (SEC) has reportedly agreed to dismiss the prolonged Gemini lawsuit. While the case began in the aftermath of the 2022 crypto market collapse, it is now ending with the investors’ full recovery of funds.  

SEC Drops Gemini Lawsuit, Investors Fully Repaid

According to a Reuters report, the US SEC has decided to drop its protracted lawsuit against the Winklevoss Twins’ Gemini. On Friday, the regulator announced the dismissal of the Gemini lawsuit, linked to the exchange’s now-defunct Earn product. The SEC stated that the case is no longer necessary.

In a court filing dated January 23, 2026, the SEC and Gemini Trust Company jointly agreed to drop the case permanently.  The SEC asserted that the decision was made on its own judgment, with the full repayment of investors playing a key role. The crypto exchange noted that the Gemini Earn investors had fully recovered their crypto assets through the Genesis Global Capital bankruptcy process in May-June 2024. The filing stated,

It is worth noting that the Gemini lawsuit dismissal comes on the heels of the platform’s recent milestones. For instance, Gemini received CFTC approval to launch its own prediction markets as major crypto exchanges are exploring similar opportunities.

Why the SEC Took Gemini to Court?

In 2023, the SEC launched the Gemini lawsuit, alleging that the company illegally sold securities to its investors through its crypto lending platform. As per the case, investors in Gemini’s Earn program had loaned their crypto to Genesis Global Capital, a crypto intermediary that is also named in the lawsuit. Subsequently, Genesis froze these funds after the 2022 FTX collapse, which led to the long crypto winter.

Last year, in April, the SEC, under Acting Chairman Mark Uyeda, paused the Gemini lawsuit. However, the case had survived a motion to dismiss, as a federal judge ruled that the SEC had plausibly shown potential securities law violations. The latest development reveals that Gemini reached a settlement with New York regulators, and Genesis has already settled with the SEC by paying a $21 million penalty.

Significantly, this major victory for Gemini is just one of several high-profile crypto lawsuits that concluded under President Trump’s administration. This also marks one of the first major crypto wins in 2026. As CoinGape reported, a Federal Judge recently dismissed a prolonged class-action suit against Mark Cuban and the Dallas Mavericks.

When Genesis froze customer accounts, the total value of assets in the Earn program was reportedly $940 million. As per the latest filing, the Winklevoss Twins have repaid 100% of their customer funds.

Source: https://coingape.com/gemini-lawsuit-dismissed-sec-drops-case-after-full-investor-recovery/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Trump dealt another major ICE setback by a judge he appointed

Trump dealt another major ICE setback by a judge he appointed

President Donald Trump's Department of Homeland Security got a huge blow on Thursday evening, as a judge he appointed found a systematic and illegal effort to deprive
Share
Rawstory2026/02/13 08:43
Academic Publishing and Fairness: A Game-Theoretic Model of Peer-Review Bias

Academic Publishing and Fairness: A Game-Theoretic Model of Peer-Review Bias

Exploring how biases in the peer-review system impact researchers' choices, showing how principles of fairness relate to the production of scientific knowledge based on topic importance and hardness.
Share
Hackernoon2025/09/17 23:15
UK crypto holders brace for FCA’s expanded regulatory reach

UK crypto holders brace for FCA’s expanded regulatory reach

The post UK crypto holders brace for FCA’s expanded regulatory reach appeared on BitcoinEthereumNews.com. British crypto holders may soon face a very different landscape as the Financial Conduct Authority (FCA) moves to expand its regulatory reach in the industry. A new consultation paper outlines how the watchdog intends to apply its rulebook to crypto firms, shaping everything from asset safeguarding to trading platform operation. According to the financial regulator, these proposals would translate into clearer protections for retail investors and stricter oversight of crypto firms. UK FCA plans Until now, UK crypto users mostly encountered the FCA through rules on promotions and anti-money laundering checks. The consultation paper goes much further. It proposes direct oversight of stablecoin issuers, custodians, and crypto-asset trading platforms (CATPs). For investors, that means the wallets, exchanges, and coins they rely on could soon be subject to the same governance and resilience standards as traditional financial institutions. The regulator has also clarified that firms need official authorization before serving customers. This condition should, in theory, reduce the risk of sudden platform failures or unclear accountability. David Geale, the FCA’s executive director of payments and digital finance, said the proposals are designed to strike a balance between innovation and protection. He explained: “We want to develop a sustainable and competitive crypto sector – balancing innovation, market integrity and trust.” Geale noted that while the rules will not eliminate investment risks, they will create consistent standards, helping consumers understand what to expect from registered firms. Why does this matter for crypto holders? The UK regulatory framework shift would provide safer custody of assets, better disclosure of risks, and clearer recourse if something goes wrong. However, the regulator was also frank in its submission, arguing that no rulebook can eliminate the volatility or inherent risks of holding digital assets. Instead, the focus is on ensuring that when consumers choose to invest, they do…
Share
BitcoinEthereumNews2025/09/17 23:52