The SEC has withdrawn its lawsuit against Gemini Earn

According to Coindesk, the U.S. Securities and Exchange Commission (SEC) stated in a court filing that it will dismiss the lawsuit against Gemini and its now-defunct Earn product. The document claims that since investors in Gemini Earn have recovered 100% of their assets, the lawsuit is no longer legally valid.

The SEC sued Gemini and Genesis Global Capital in 2023, accusing the two companies of selling unregistered securities in the form of Gemini's yield-generating product, Earn. The SEC stated in the lawsuit that investors entrusted their funds to Gemini, which then lent those funds to Genesis, and that Genesis halted withdrawals after the FTX collapse in 2022 and the broader downturn in the cryptocurrency market. Last April, after Acting Chair Mark Uyeda took over the agency, the SEC paused the lawsuit.