The SEC ended the Gemini Earn case with prejudice after Earn users received full in-kind crypto repayments via Genesis bankruptcy.
Investor restitution drove the dismissal, with Genesis returning $2B in assets and Gemini adding up to $40M for customers.
The move fits a broader SEC pullback on crypto enforcement, following similar case closures involving major crypto firms.
The U.S. Securities and Exchange Commission ended its long-running case against Gemini Trust Company on January 23, 2026, in New York. Court filings show the regulator dismissed the Gemini Earn lawsuit with prejudice, blocking any future refiling. The decision followed full crypto repayments to Earn users through Genesis Global Capital’s bankruptcy process.
Court Filing Ends Gemini Earn Dispute
According to filings in the U.S. District Court for the Southern District of New York, the SEC and Gemini submitted a joint stipulation Friday. The filing formally dismissed claims that Gemini Earn involved unregistered securities offerings. A federal judge must still approve the stipulation; however, the filing confirms the dispute’s near conclusion.
The SEC initially sued Gemini Trust Company and Genesis Global Capital in January 2023. The lawsuit focused on the Gemini Earn program, which allowed users to earn interest by lending crypto to Genesis. The agency paused the case in April 2024 while reassessing several crypto enforcement actions.
Notably, Genesis already settled with the SEC earlier by agreeing to pay a $21 million penalty. With Genesis resolved, attention shifted to investor recovery outcomes tied to the bankruptcy proceedings.
Investor Repayments Drove the SEC Decision
The SEC linked its dismissal directly to investor restitution achieved during the Genesis bankruptcy. Court documents state Gemini Earn users received a full in-kind return of their crypto holdings by mid-2024. These repayments occurred between May and June 2024.
Additionally, Gemini agreed to contribute up to $40 million to support customer recoveries. The regulator noted that returned assets significantly reduced investor harm. Gemini also resolved related matters with state regulators, including New York authorities.
Genesis returned roughly $2 billion in crypto assets to customers, including about $900 million tied to nearly 340,000 Gemini Earn users. Funds had remained frozen since late 2022 after Genesis suffered losses linked to FTX exposure.
Background and Broader Enforcement Context
Gemini launched Earn in December 2020 through a partnership with Genesis, a Digital Currency Group affiliate. Withdrawals froze in 2022 during market turmoil following FTX’s collapse. That freeze triggered extensive litigation and regulatory scrutiny.
Since January 2025, the SEC has dropped or narrowed several crypto cases. Similar enforcement reversals affected Binance, Kraken, Uniswap, Immutable, and Robinhood. The agency also cited asset recovery when ending other disputes.
Gemini, founded by Tyler and Cameron Winklevoss, completed Earn repayments before the dismissal. Gemini Space Station, now publicly listed on Nasdaq as GEMI, closed lower Friday after the filing.
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