SEC Drops Lawsuit Against Gemini After Full Crypto Repayment
The U.S. Securities and Exchange Commission dismissed its civil lawsuit against Gemini Trust Company, marking a victory for founders Tyler and Cameron Winklevoss. The closure follows the full repayment of crypto assets to Gemini Earn users through Genesis Global Capital’s bankruptcy process between May and June 2024.
Investor restitution proved pivotal—the SEC cited the 100% crypto recovery as grounds to drop the case "with prejudice," preventing future litigation. Gemini had already resolved parallel state regulatory actions, further mitigating legal exposure.
The January 2026 filing underscores a rare regulatory retreat in crypto enforcement. While the SEC initially alleged securities violations in 2023, the resolution reflects pragmatic enforcement when investor harm is remedied.