Overview
- The SEC and Gemini filed a joint stipulation in the Southern District of New York to end the enforcement action with prejudice.
- The move follows a 100% in-kind return to Earn investors between May and June 2024 through Genesis’s bankruptcy, with Gemini committing up to $40 million to close gaps.
- A federal judge’s approval remains the final procedural step before the case is formally closed.
- The SEC said the decision is case-specific and does not signal a broader shift in its other crypto enforcement matters, while Genesis separately paid a $21 million civil penalty.
- The 2023 lawsuit alleged unregistered securities sales through the Earn lending program, which had about $940 million in customer assets locked when Genesis froze withdrawals in November 2022.