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SEC Drops 3-Year Lawsuit Against Gemini in Landmark Crypto Settlement

SEC Drops 3-Year Lawsuit Against Gemini in Landmark Crypto Settlement

Author:

Global Cryptocurrency

Published:

2026-01-25 11:00:02

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BTCCSquare news:

The U.S. Securities and Exchange Commission has moved to dismiss its high-profile enforcement action against Gemini Trust Company, marking the end of a three-year legal battle over the Gemini Earn program. The joint stipulation, filed this week, signals a strategic retreat by regulators after recovering 100% of investor assets locked during Genesis Global Capital's bankruptcy proceedings.

Gemini's $50 million settlement with state and federal authorities underscores the shifting enforcement landscape for crypto lending products. The now-defunct Earn program offered 7.4% yields before collapsing during the 2022 crypto contagion that followed FTX's implosion.

This resolution removes a key legal overhang for the Winklevoss twins' exchange while establishing precedent for how regulators may handle similar cases involving recovered investor funds.

By:

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