The U.S. Securities and Exchange Commission (SEC) has dropped its civil sanctions case against Gemini Trust Company, LLC.
The agency announced today that a joint petition between the SEC and Gemini has been filed in court, definitively ending the case and preventing its reopening.
The lawsuit in question was initiated in January 2023 under the Gemini Earn program. The SEC alleged that the cryptocurrency yield products offered in this program constituted an unregistered securities offering. The case was heard in the Southern District of New York Federal Court, where Genesis was also a party.
The SEC’s announcement stated that the decision to dismiss the case was made at the Commission’s discretion. The statement cited as reasons for this decision the return of 100% of Gemini Earn investors’ crypto assets in kind, as well as state and regulatory settlements reached by Gemini in connection with the program.
On the other hand, the SEC also emphasized that this step does not necessarily reflect the Commission’s legal approach in other cases. The statement stressed that dismissing the case may not set a precedent for other similar investigations or cases.
*This is not investment advice.
