The U.S. Securities and Exchange Commission (SEC) has reached a settlement with Gemini, the cryptocurrency exchange founded by the Winklevoss twins, regarding a lawsuit tied to the now-defunct Earn product.
In January 2023, the regulator accused the exchange of unregistered securities offerings through its lending program. Earn users were promised returns of up to 8% annually on their cryptocurrency deposits.
In mid-November 2022, the exchange halted payments under the program due to financial issues faced by its primary partner—OTC platform Genesis Global Capital. The firm owed Gemini $900 million in client funds that had been lent out.
In February 2024, the exchange committed to returning $1.1 billion to Earn users as part of a settlement with the New York State Department of Financial Services (NYSDF). The platform later stated it would reimburse 100% of the assets to clients of the program, totaling $2.18 billion.
Following a leadership change at the SEC in early 2025, the agency decided to drop the administrative case against the exchange. In April, both parties requested a 60-day delay from the court to explore potential settlement options.
According to the reached agreement, the Commission sees no grounds for continuing the process, as Earn clients have received back 100% of their assets through Genesis's bankruptcy proceedings.
Gemini has agreed to contribute $40 million to fund the return of funds as part of settling claims with the NYSDF.
Genesis has also reached a settlement with the SEC, paying a $21 million fine.
It’s worth noting that in September 2025, Gemini conducted an IPO, raising $425 million.