SEC Dismisses Civil Action Against Gemini With Prejudice

The U.S. Securities and Exchange Commission (SEC) has formally dismissed its civil action against Gemini Trust Company, LLC. The dismissal was entered ‘with prejudice,’ a significant legal determination that prohibits the regulator from refiling the same charges against Gemini in the future concerning the alleged sale of unregistered securities.

The lawsuit, originally filed in January 2023, targeted Gemini and its lending partner, Genesis Global Capital, LLC. The SEC alleged that the firms illegally offered the Gemini Earn program, which allowed retail customers to lend their crypto assets in exchange for promised returns, without registering the offering.

While the dismissal ends the regulatory dispute between the SEC and Gemini, it follows extensive restructuring and negotiation related to the defunct Gemini Earn program, which suspended withdrawals in November 2022. The case’s closure marks a decisive victory for Gemini, allowing the company to focus entirely on its ongoing efforts to return frozen assets to the estimated 232,000 impacted customers.

Source: SEC dismisses civil action against Gemini with prejudice

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