The SEC has withdrawn its lawsuit against Gemini after a settlement over the Earn product, which promised high returns on crypto deposits.
The U.S. Securities and Exchange Commission (SEC) has withdrawn its lawsuit against the cryptocurrency exchange Gemini, founded by the Winklevoss twins, after reaching a settlement related to its now-defunct Earn product.
Initially, in January 2023, the SEC accused Gemini of offering unregistered securities through its lending program, which promised users returns of up to 8% annually on their crypto deposits. The program was suspended in November 2022 due to financial troubles with its primary partner, Genesis Global Capital, which owed Gemini $900 million in client funds.
As part of a separate settlement with the New York State Department of Financial Services (NYSDF) in February 2024, Gemini pledged to return $1.1 billion to Earn users. Ultimately, the exchange committed to fully reimbursing clients, amounting to $2.18 billion.
Following a change in leadership at the SEC in early 2025, the agency opted to discontinue the administrative case against Gemini. In April, both parties sought a 60-day extension from the court to explore potential settlement avenues.
The agreement concluded that the SEC found no reason to continue pursuing the case, especially since Earn clients had received full reimbursement through Genesis's bankruptcy proceedings. Additionally, Gemini has agreed to contribute $40 million to support the return of funds in settling claims with the NYSDF.
Genesis has also settled with the SEC, agreeing to pay a $21 million fine. Notably, in September 2025, Gemini successfully conducted an initial public offering (IPO), raising $425 million.
