Gemini Tentatively Settles SEC Lawsuit over Earn Lending Program
Gemini has made progress toward settling a meaningful lawsuit with the U.S. Securities and Exchange Commission (SEC). The dispute revolves around Gemini’s Earn lending program.
In a recent court document, both Gemini and the SEC stated they have agreed to settle the lawsuit in principle. Gemini, now known as Gemini Space Station, got this news after recently going public with a successful IPO that raised $425 million.
thegemini earn program offered users the chance to lend their Bitcoins and other cryptos to Genesis Global Capital in return for interest.However, trouble brewed in November 2022 when Genesis froze withdrawals following the FTX crash. By January 2023, Genesis was bankrupt, trapping $900 million in customer funds from about 340,000 users.
- The SEC initially sued gemini for bypassing disclosure rules to protect investors.
- Genesis settled their portion of the lawsuit for $21 million but without admitting guilt.
- Gemini contested the charges but now seems prepared to settle.
This move aligns with the recent shift towards a more lenient regulatory environment under President Donald Trump. Such shifts usually ease pressure on cryptocurrency companies. For Gemini’s co-founders, Tyler and Cameron Winklevoss, a resolution can aid business growth especially as they now hold an estimated $4.6 billion each.
