SEC Officially Ends Gemini Lawsuit After Full Investor Repayment

The United States Securities and Exchange Commission (SEC) has agreed to permanently dismiss its long-running lawsuit against Gemini Trust Company. 

The SEC’s decision to dismiss the Gemini lawsuit closes a key chapter from the crypto market downturn of 2022. The regulator concluded that continuing the case was no longer necessary, given the outcome for affected customers and recent settlements.

SEC Drops Gemini Earn Case After Full Investor Repayment

As revealed earlier today, the SEC and Gemini jointly filed to dismiss the case with prejudice, meaning it cannot be reopened. The regulator said it reached the decision using its own discretion and considered the full repayment of investors as a central factor. 

The lawsuit centered on Gemini Earn, a now-defunct lending product offered by the exchange. Gemini confirmed that all investors who used the Earn program recovered 100% of their crypto assets. 

The repayment occurred through the Genesis Global Capital bankruptcy process between May and June 2024. Genesis had acted as the lending partner for the Earn program before freezing customer funds during the 2022 market crash.

At the time of the freeze, assets locked in the Earn program were valued at about $940 million. The latest court filing confirms that customers received their assets in full, resolving one of the largest losses linked to the crypto exchange.

SEC Lawsuit Against Gemini Stemmed From Earn Program and FTX Fallout

The SEC filed the lawsuit in 2023, alleging that Gemini sold unregistered securities through its Earn program. Under the program, customers lent their crypto to Genesis Global Capital in exchange for yield. 

After the collapse of FTX in 2022, Genesis halted withdrawals, triggering legal action and regulatory scrutiny. In April 2025, the SEC paused the case under Acting Chairman Mark Uyeda. 

A federal judge later allowed the lawsuit to continue after finding possible securities law issues. However, negotiations and repayments later changed the direction of the case.

The Nasdaq-listed company dismissal marks one of the first major crypto legal wins of 2026. It also adds to a growing list of high-profile crypto cases that have concluded under President Trump’s administration. 

Recently, a federal judge dismissed a long-running class action lawsuit against Mark Cuban and the Dallas Mavericks. This signals a broader shift in how courts and regulators are resolving crypto-related disputes.

Gemini Moves Ahead with New Milestones

The dismissal follows a series of settlements. Gemini resolved issues with New York regulators, while Genesis reached an agreement with the SEC by paying a $21 million penalty. 

These outcomes helped close remaining regulatory concerns and supported the SEC’s decision to drop the case against Gemini. The end of the lawsuit comes as Gemini recently recorded new progress. 

The exchange recently received approval from the Commodity Futures Trading Commission (CFTC) to launch prediction markets. This step places Gemini among several major crypto platforms exploring new regulated products in the United States.