U.S. SEC Drops Lawsuit Against Gemini Earn

Odaily News: The U.S. Securities and Exchange Commission (SEC) stated in a court filing that it will dismiss the lawsuit filed against Gemini and its now-defunct Earn product. The document indicated that since investors in Gemini Earn have recovered 100% of their assets, the lawsuit no longer has legal grounds.

The SEC sued Gemini and Genesis Global Capital in 2023, alleging that the two companies sold unregistered securities in the form of Gemini's yield-generating product, Earn. In the lawsuit, the SEC claimed that investors entrusted funds to Gemini, which then lent those funds to Genesis. Genesis halted withdrawals following the collapse of FTX and the broader crypto market downturn in 2022. Last April, the SEC paused the lawsuit after Acting Chairman Mark Uyeda took over the regulatory agency.