The Securities and Exchange Commission has dropped its lawsuit against Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, ending a high-profile case that once loomed over one of the industry’s most recognizable names.
In a joint filing submitted Friday, the SEC and Gemini asked a federal court to dismiss the case, which stemmed from the collapse of Gemini Earn — an investment program that left some users unable to access their funds for as long as 18 months.
The dismissal marks a sharp turn in a legal saga that had symbolized Washington’s tougher stance on crypto markets following a string of industry failures.
A Program That Froze Investor Funds
At the heart of the dispute was Gemini Earn, a product that allowed customers to lend their crypto assets in exchange for yield. When the program unraveled, many investors found their funds locked away, sparking lawsuits and regulatory scrutiny.
The SEC’s now-dismissed case focused on whether Gemini had violated securities laws in offering the product. The agency did not publicly explain its reasoning beyond the court filing.
