In a pivotal turn of events, the US Securities and Exchange Commission (SEC) has officially dismissed its case against Gemini Trust Company, marking a significant moment for the cryptocurrency exchange and its users. According to the official information, this decision comes in the wake of the controversial Gemini Earn lending program, which faced scrutiny following the collapse of its partner, Genesis.
SEC's Case Against Gemini
The SEC's case against Gemini was initiated in January 2023, accusing the company of offering unregistered securities through the Gemini Earn program. This program allowed users to lend their cryptocurrency assets to Genesis in exchange for yield. However, the situation escalated when Genesis froze withdrawals during the 2022 market downturn, leaving many Earn users unable to access their funds for over a year.
Outcome of the Case
The dismissal of the case was granted with prejudice, meaning the SEC is barred from refiling the same claims in the future. This outcome was made possible by the recovery of the original crypto assets lent to Genesis, a process that was facilitated by the ongoing bankruptcy proceedings and related settlements involving Genesis. This resolution not only alleviates legal pressures on Gemini but also restores some confidence among its users who were affected by the lending program's collapse.
The SEC previously dropped its lawsuit against Gemini Trust Company, allowing users to recover their funds from the Gemini Earn program. This significant resolution is detailed in the article read more.
