SEC to Dismiss Winklevoss’ Gemini Crypto Lending Lawsuit

The US Securities and Exchange Commission will drop the agency’s 2023 lawsuit against Gemini Trust Co. that accused the firm of illegally raising billions of dollars through an unregistered crypto lending program.

Attorneys for the firm and the SEC asked a federal judge in New York to dismiss the case, according to a filing Friday. The agency said its decision was based on the company reaching a settlement with the New York State Department of Financial Services and customers getting back 100% of their crypto assets. As in other cases, the SEC also said the dismissal was “in the exercise of its discretion.”

An attorney for Gemini didn’t immediately respond to a request for comment. The SEC declined to comment beyond the filing.

The SEC sued crypto exchange Gemini and now-bankrupt Genesis Global Capital in 2023, alleging the firms violated investor protection laws by raising billions from customers through the offering of unregistered securities. The regulator zeroed in on Gemini Earn, a program that let customers loan out their crypto in exchange for interest payments that exceeded traditional bank offerings.

The SEC under President Donald Trump has largely reversed its approach to crypto enforcement, ending or pausing at least a dozen lawsuits against digital asset companies, including Coinbase Global Inc. and Binance Holdings Ltd. That shift comes as Trump has called to make the US the “crypto capital” of the world and digital assets have transformed his family’s wealth.

Founded by billionaire twin brothers Tyler and Cameron Winklevoss, Gemini in September became a publicly traded company with the name Gemini Space Station Inc.

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Nicola M White in Washington at nicwhite@bloomberg.net

To contact the editor responsible for this story:
Megan Howard at mhoward70@bloomberg.net

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