{"id":93517,"date":"2026-01-24T18:15:23","date_gmt":"2026-01-24T15:15:23","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=93517"},"modified":"2026-01-24T18:20:11","modified_gmt":"2026-01-24T15:20:11","slug":"sec-withdraws-lawsuit-against-bitcoin-exchange-gemini","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/sec-withdraws-lawsuit-against-bitcoin-exchange-gemini\/","title":{"rendered":"SEC Withdraws Lawsuit Against Bitcoin Exchange Gemini"},"content":{"rendered":"<p>The U.S. Securities and Exchange Commission (SEC) has <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.592343\/gov.uscourts.nysd.592343.85.0.pdf\">reached<\/a> a settlement with the Winklevoss brothers&#8217; Gemini over a lawsuit related to the defunct Earn yield product.<\/p>\n<p>In January 2023, the regulator accused the crypto exchange of offering unregistered securities through its lending program. Earn users received up to 8% annual returns on cryptocurrency deposits.<\/p>\n<p>In mid-November 2022, the exchange suspended payments under the program. This occurred amid <a href=\"https:\/\/forklog.com\/en\/news\/genesis-global-capital-suspends-crypto-lending-operations\">financial difficulties of its main partner<\/a>, the <span data-descr=\"over-the-counter trading\" class=\"old_tooltip\">OTC<\/span> platform Genesis Global Capital. The firm owed <a href=\"https:\/\/forklog.com\/en\/news\/ft-reports-genesis-and-dcg-owe-gemini-clients-900-million\">Gemini $900 million<\/a> in client funds provided as loans.<\/p>\n<p>In February 2024, the exchange committed to <a href=\"https:\/\/forklog.com\/en\/news\/gemini-to-pay-37-million-fine-and-return-1-1-billion-to-clients\">returning $1.1 billion to Earn users<\/a> as part of a settlement with the New York State Department of Financial Services (NYSDF). Later, the platform announced it would reimburse 100% of client assets in the program, totaling <a href=\"https:\/\/forklog.com\/en\/news\/gemini-earn-users-to-recover-2-18-billion-in-assets\">$2.18 billion<\/a>.<\/p>\n<p>Following a leadership change at the SEC in early 2025, the agency decided to discontinue the administrative case against the exchange. In April, the parties <a href=\"https:\/\/forklog.com\/en\/news\/sec-and-gemini-request-court-extension-for-dispute-resolution\">requested<\/a> a 60-day delay in the lawsuit to explore a potential settlement.<\/p>\n<p>Under the agreement reached, the Commission sees no grounds to continue the process, as Earn clients have recovered 100% of their assets through Genesis&#8217;s bankruptcy proceedings.<\/p>\n<p>Gemini agreed to contribute $40 million to fund the repayment procedure as part of settling NYSDF claims. <\/p>\n<p>Genesis also settled with the SEC, paying a $21 million fine.<\/p>\n<p>In September 2025, Gemini <a href=\"https:\/\/forklog.com\/en\/news\/gemini-crypto-exchange-raises-425-million-in-ipo\">conducted<\/a> an <span data-descr=\"initial public offering\" class=\"old_tooltip\">IPO<\/span>, raising $425 million.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Securities and Exchange Commission (SEC) has reached a settlement with the Winklevoss brothers&#8217; Gemini over a lawsuit related to the defunct Earn yield product.<\/p>\n","protected":false},"author":1,"featured_media":93518,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"SEC settles with Gemini over Earn product lawsuit.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1166,1162,719,128],"class_list":["post-93517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-centralized-exchanges-cex","tag-court-cases","tag-gemini","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"266","promo_type":"1","layout_type":"1","short_excerpt":"SEC settles with Gemini over Earn product lawsuit.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=93517"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93517\/revisions"}],"predecessor-version":[{"id":93519,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93517\/revisions\/93519"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/93518"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=93517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=93517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=93517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}