The SEC Drops Lawsuit Against Gemini's Earn Product, Stating Investors Have Fully Redeemed Their Assets

**Jan 24 – The U.S. Securities and Exchange Commission (SEC) filed court documents Friday local time to dismiss its lawsuit against cryptocurrency exchange Gemini.** The SEC said it no longer needs to pursue the case because Gemini Earn users have recovered 100% of their assets through the Genesis bankruptcy process. Back in 2023, the SEC sued Gemini and Genesis Global Capital, alleging they sold unregistered securities via Gemini’s yield-generating Earn product. The product halted withdrawals after the 2022 FTX collapse and crypto market slump, sparking regulatory action. Court documents show the SEC has reached a settlement with Gemini, confirming investors have received a “100% make-whole remedy” — pending formal approval from a federal judge. Previously, Genesis settled with the SEC by agreeing to pay a $21 million fine, and Gemini also resolved its case with New York state’s regulatory agency. This case is among more than a dozen crypto-related lawsuits the SEC has dismissed in the past year. SEC Chairman Paul Atkins noted last year the agency would release new guidance on digital assets to clarify which products qualify as securities.