Why SEC has dropped lawsuit against Gemini cryptocurrency exchange
The SEC dropped its lawsuit against Gemini after full recovery of assets for investors affected by the collapse of Gemini Earn.Summary
The US Securities and Exchange Commission (SEC) has terminated its lawsuit against cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss, due to the successful recovery of assets for investors. The lawsuit originally centered on the collapse of Gemini Earn, an investment product that left investors without access to their funds for 18 months. A joint filing by the SEC and Gemini requested dismissal after the full return of crypto assets to Gemini Earn investors through the Genesis Global Capital bankruptcy process between May and June 2024.
This decision also reflects a policy shift within the SEC under the Trump administration, which has signaled a more favorable approach to the cryptocurrency industry. President Trump has pledged to be the “crypto president” and promote the mainstream adoption of digital currencies. This change in strategy is evident in the SEC’s willingness to resolve the case against Gemini, despite previously charging Genesis Global Capital and Gemini Trust Company with illegally selling securities.
Notably, Genesis distinguished itself from other bankrupt crypto firms by returning customer assets “100% in-kind” – meaning in the original cryptocurrency form – rather than liquidating assets and providing cash reimbursements. The SEC highlighted this full asset return as a key factor in its decision to dismiss the claims against Gemini, emphasizing the importance of customer protection.
(Source：Newsbytes)