The Securities and Exchange Commission dropped its lawsuit against crypto exchange Gemini, according to a court document filed Friday.
In a joint filing, the SEC and Gemini seek to dismiss a 2023 lawsuit filed over the collapse of Gemini Earn, an investment product in which Gemini customers loaned their crypto assets to fellow crypto firm Genesis in exchange for interest.
When Genesis paused withdrawals in late 2022 due to market volatility, Gemini Earn investors were frozen out of their funds, and they remained locked out for 18 months. Genesis filed for bankruptcy shortly after pausing withdrawals.
In seeking dismissal of the lawsuit, the SEC on Friday said that because Gemini Earn investors got 100% of their crypto assets back through Genesis’ bankruptcy, “the Commission believes the dismissal of the claims against Defendant is appropriate.”
Gemini previously settled with New York Attorney General Letitia James in 2024 for $50 million, which was then meant to pay 230,000 investors allegedly defrauded by the Gemini Earn program.
The Gemini case is one of many enforcement actions against crypto firms that the SEC has sought to dismiss since the beginning of the second Trump administration. Cases against Binance and Kraken were dropped, as well as cases against Robinhood and Coinbase.
In all, the SEC has either dismissed, paused or reduced penalties in nearly two-thirds of pending crypto lawsuits since Trump took office in January 2025, The New York Times reported in December.
Gemini did not immediately respond to a request for comment.
Gemini’s efforts to get on the right side of regulators garnered some publicity last summer, when former Commodity Futures Trading Commission nominee Brian Quintenz alleged the crypto firm’s founders, Cameron and Tyler Winklevoss, lobbied the White House to stall his nomination after he refused to explicitly commit to dropping a complaint the CFTC filed against Gemini.
