The U.S. civil suit by the SEC against Gemini Trust Company and Genesis Global Capital over the Gemini Earn lending program was dismissed with prejudice after the parties filed a joint stipulation on Friday in the U.S. District Court for the Southern District of New York, and the agency cited a full recovery plan for investor assets as the reason. The joint stipulation said investors would receive an “100% in-kind return” through the Genesis bankruptcy and that Gemini agreed to contribute up to $40 million to fund the returns.
A federal judge still must sign the stipulation before the dismissal becomes final (Ed. note: the judge’s signature is required to complete the dismissal). The SEC paused the civil action in April 2024 while the agency underwent leadership changes.
The filings also note that Genesis already reached a separate settlement with the SEC and agreed to pay a $21 million fine. The settlement and the recovery plan formed the basis for the agency’s decision to drop the suit.
The dismissal follows a wider pattern of U.S. authorities dropping or resolving several crypto cases since 2025, including matters involving Binance, Kraken, Uniswap, Immutable, and Robinhood. The Department of Justice also recently dropped a nonfungible token insider-trading case after an appeals court reversed convictions in that matter.
