The U.S. Securities and Exchange Commission (SEC) on Friday agreed to dismiss its enforcement case against a cryptocurrency exchange founded by billionaire twins Tyler and Cameron Winklevoss, after investors in its lending program recovered their assets in full, reports Reuters.
The SEC and the exchange, now known as Gemini Space Station, filed a joint stipulation in federal court in Manhattan seeking dismissal of the case. The filing cited the complete return of crypto assets to Gemini Earn investors through the Genesis Global Capital bankruptcy process between May and June 2024.
The financial regulator had decided last year to resolve the lawsuit.
The dismissal comes as the SEC adjusts its approach to cryptocurrency enforcement under U.S. President Donald Trump, who has vowed to be a “crypto president,” promising more favourable regulation and wider mainstream adoption of digital assets.
Gemini did not immediately respond to a request for comment outside regular business hours.
The SEC initially brought charges in 2023 against Genesis Global Capital and Gemini Trust Company, alleging they illegally sold unregistered securities to hundreds of thousands of investors through the Gemini Earn crypto lending program.
Under the program, Gemini customers lent their digital assets to Genesis in exchange for interest payments. When Genesis froze customer withdrawals in November 2022, the total value of assets held in the Gemini Earn program stood at $940 million, according to Gemini.
Unlike several crypto firms that collapsed following the 2022 market downturn, Genesis was able to return customers’ crypto assets in kind rather than liquidating holdings and repaying investors in cash.
“After the 100 percent in-kind return of Gemini Earn investors’ crypto assets through the Genesis bankruptcy and related settlements, the Commission believes dismissal of the claims against the defendant is appropriate,” the SEC said in its court filing.
The regulator emphasized that the dismissal does not reflect its position on other enforcement actions.
Gemini last year made a strong debut on Nasdaq, underscoring growing institutional adoption and renewed investor optimism in digital assets. The exchange is currently valued at about $1.14 billion, according to data from LSEG.
Bd-pratidin English/ Jisan
