Overview

• In a joint letter to Judge Edgardo Ramos, both sides reported a “resolution in principle” that would completely resolve the SDNY case, subject to Commission approval.
• The parties asked the court to stay all deadlines and set Dec. 15 as the date to submit final settlement documents.
• The SEC’s 2023 suit alleged Gemini Earn was an unregistered securities offering tied to loans to Genesis, which froze withdrawals in November 2022.
• Genesis later filed for bankruptcy, held about $900 million from roughly 340,000 Earn customers, and settled related SEC claims for $21 million without admitting wrongdoing.
• The disclosure arrived four days after Gemini’s $425 million IPO that valued the company around $3.3 billion, with Gemini continuing to deny wrongdoing.