SEC Drops Case Against Winklevoss-Founded Gemini

The U.S. Securities and Exchange Commission has agreed to dismiss its enforcement case against cryptocurrency exchange Gemini, founded by billionaire twins Tyler Winklevoss and Cameron Winklevoss, after investors in its lending programme recovered their assets in full.

The SEC and Gemini filed a joint stipulation in federal court in Manhattan on Friday, citing the complete return of crypto assets to Gemini Earn investors through the Genesis Global Capital bankruptcy process between May and June 2024.

In 2023, the SEC charged Genesis and Gemini Trust Company with illegally selling securities via the Gemini Earn programme, which allowed customers to lend crypto assets to Genesis in exchange for interest. At its peak, the programme held about $940 million in assets before Genesis froze withdrawals in November 2022.

Unlike several crypto firms that collapsed after the 2022 market downturn, Genesis ultimately returned customers’ crypto in kind rather than liquidating assets and paying cash. The SEC said this full recovery made dismissal of the claims appropriate, while stressing the decision does not set a precedent for other cases.

The move reflects a broader shift in U.S. crypto enforcement under President Donald Trump, who has pledged a more industry-friendly regulatory approach. Gemini did not immediately comment on the dismissal.