SEC Dismisses Gemini Earn Lawsuit After Full Investor Recovery

The U.S. Securities and Exchange Commission (SEC) has dismissed its lawsuit against Gemini Trust Company concerning the Gemini Earn program. This decision comes after the full recovery of funds for all affected investors, concluding a legal dispute that lasted three years.

The SEC had initially filed the lawsuit against Gemini Trust, alleging that the Earn program violated securities regulations. The program allowed users to earn interest on their cryptocurrency holdings, which the SEC claimed was an unregistered securities offering.

Following negotiations and the recovery of all investor funds, the SEC has decided to dismiss the case with prejudice, meaning it cannot be refiled. This resolution brings closure to the legal proceedings and allows Gemini to move forward without the overhang of this litigation.

The dismissal of the lawsuit is significant as it highlights the importance of regulatory compliance in cryptocurrency offerings and provides a precedent for how similar cases might be resolved in the future.

Key facts

• The SEC dismissed the lawsuit against Gemini Trust with prejudice.
• All investor funds from the Earn program have been fully recovered.
• The legal battle lasted for three years.
• The Earn program was alleged to be an unregistered securities offering.

Sources

• The Block
• Cointelegraph