The U.S. Securities and Exchange Commission has dismissed its lawsuit against Gemini Trust Company with prejudice, closing a major enforcement case related to the firm’s Earn program. The SEC cited the full restitution made to Earn investors as a key factor in its decision, though it clarified this does not signal a change in its broader enforcement stance.
The U.S. Securities and Exchange Commission has formally dismissed its civil enforcement action against Gemini Trust Company. This brings regulatory closure to one of the most closely watched cases tied to the collapse of crypto yield products in 2022.
In a litigation release published on 23 January, the SEC confirmed filing a joint stipulation to dismiss the case with prejudice. The lawsuit was originally brought in January 2023 and centered on Gemini’s Earn program.
According to the SEC, the decision was made “in the exercise of its discretion.” It also took into account the 100% in-kind return of customer crypto assets to Gemini Earn investors.
The regulator stressed that the dismissal does not reflect its position on other crypto cases. This shows the outcome is specific to Gemini’s remediation efforts rather than a broader shift in policy.
Dismissals with prejudice remain uncommon in high-profile crypto cases, particularly those tied to yield products. The Gemini Earn case had been one of the last unresolved enforcement actions from the 2022 market downturn.
The dismissal does not establish legal precedent on classifying crypto yield products. However, it highlights restitution and investor recovery as decisive factors in enforcement outcomes.
