The post SEC Drops Case After Full Investor Recovery appeared on BitcoinEthereumNews.com. The US Securities and Exchange Commission (SEC) has reportedly agreed The post SEC Drops Case After Full Investor Recovery appeared on BitcoinEthereumNews.com. The US Securities and Exchange Commission (SEC) has reportedly agreed

SEC Drops Case After Full Investor Recovery

The US Securities and Exchange Commission (SEC) has reportedly agreed to dismiss the prolonged Gemini lawsuit. While the case began in the aftermath of the 2022 crypto market collapse, it is now ending with the investors’ full recovery of funds.  

SEC Drops Gemini Lawsuit, Investors Fully Repaid

According to a Reuters report, the US SEC has decided to drop its protracted lawsuit against the Winklevoss Twins’ Gemini. On Friday, the regulator announced the dismissal of the Gemini lawsuit, linked to the exchange’s now-defunct Earn product. The SEC stated that the case is no longer necessary.

In a court filing dated January 23, 2026, the SEC and Gemini Trust Company jointly agreed to drop the case permanently.  The SEC asserted that the decision was made on its own judgment, with the full repayment of investors playing a key role. The crypto exchange noted that the Gemini Earn investors had fully recovered their crypto assets through the Genesis Global Capital bankruptcy process in May-June 2024. The filing stated,

It is worth noting that the Gemini lawsuit dismissal comes on the heels of the platform’s recent milestones. For instance, Gemini received CFTC approval to launch its own prediction markets as major crypto exchanges are exploring similar opportunities.

Why the SEC Took Gemini to Court?

In 2023, the SEC launched the Gemini lawsuit, alleging that the company illegally sold securities to its investors through its crypto lending platform. As per the case, investors in Gemini’s Earn program had loaned their crypto to Genesis Global Capital, a crypto intermediary that is also named in the lawsuit. Subsequently, Genesis froze these funds after the 2022 FTX collapse, which led to the long crypto winter.

Last year, in April, the SEC, under Acting Chairman Mark Uyeda, paused the Gemini lawsuit. However, the case had survived a motion to dismiss, as a federal judge ruled that the SEC had plausibly shown potential securities law violations. The latest development reveals that Gemini reached a settlement with New York regulators, and Genesis has already settled with the SEC by paying a $21 million penalty.

Significantly, this major victory for Gemini is just one of several high-profile crypto lawsuits that concluded under President Trump’s administration. This also marks one of the first major crypto wins in 2026. As CoinGape reported, a Federal Judge recently dismissed a prolonged class-action suit against Mark Cuban and the Dallas Mavericks.

When Genesis froze customer accounts, the total value of assets in the Earn program was reportedly $940 million. As per the latest filing, the Winklevoss Twins have repaid 100% of their customer funds.

Source: https://coingape.com/gemini-lawsuit-dismissed-sec-drops-case-after-full-investor-recovery/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Trump calls US Olympian 'a real loser' for saying he represents what’s 'good about the US'

Trump calls US Olympian 'a real loser' for saying he represents what’s 'good about the US'

President Donald Trump on Sunday jumped into the fray of MAGA Republicans complaining about U.S. athletes at the Olympic Winter Games in Milan who’ve expressed
Share
Alternet2026/02/09 01:30
Fed Decides On Interest Rates Today—Here’s What To Watch For

Fed Decides On Interest Rates Today—Here’s What To Watch For

The post Fed Decides On Interest Rates Today—Here’s What To Watch For appeared on BitcoinEthereumNews.com. Topline The Federal Reserve on Wednesday will conclude a two-day policymaking meeting and release a decision on whether to lower interest rates—following months of pressure and criticism from President Donald Trump—and potentially signal whether additional cuts are on the way. President Donald Trump has urged the central bank to “CUT INTEREST RATES, NOW, AND BIGGER” than they might plan to. Getty Images Key Facts The central bank is poised to cut interest rates by at least a quarter-point, down from the 4.25% to 4.5% range where they have been held since December to between 4% and 4.25%, as Wall Street has placed 100% odds of a rate cut, according to CME’s FedWatch, with higher odds (94%) on a quarter-point cut than a half-point (6%) reduction. Fed governors Christopher Waller and Michelle Bowman, both Trump appointees, voted in July for a quarter-point reduction to rates, and they may dissent again in favor of a large cut alongside Stephen Miran, Trump’s Council of Economic Advisers’ chair, who was sworn in at the meeting’s start on Tuesday. It’s unclear whether other policymakers, including Kansas City Fed President Jeffrey Schmid and St. Louis Fed President Alberto Musalem, will favor larger cuts or opt for no reduction. Fed Chair Jerome Powell said in his Jackson Hole, Wyoming, address last month the central bank would likely consider a looser monetary policy, noting the “shifting balance of risks” on the U.S. economy “may warrant adjusting our policy stance.” David Mericle, an economist for Goldman Sachs, wrote in a note the “key question” for the Fed’s meeting is whether policymakers signal “this is likely the first in a series of consecutive cuts” as the central bank is anticipated to “acknowledge the softening in the labor market,” though they may not “nod to an October cut.” Mericle said he…
Share
BitcoinEthereumNews2025/09/18 00:23
The Best Crypto Presales Showing Explosive Growth Potential This Q1: ZKP, LiquidChain, Maxi Doge & BMIC!

The Best Crypto Presales Showing Explosive Growth Potential This Q1: ZKP, LiquidChain, Maxi Doge & BMIC!

If you’re looking to get in early on the next big thing in crypto, crypto presales are where some of […] The post The Best Crypto Presales Showing Explosive Growth
Share
Coindoo2026/02/09 02:30