The US Securities and Exchange Commission has formally dismissed its civil enforcement action against Gemini Trust Company, bringing an end to a high-profile case tied to the collapse of the Gemini Earn crypto lending program. The dismissal, filed in federal court, permanently closes the matter pending judicial approval.
According to court records, the SEC and the defendants jointly agreed to dismiss the lawsuit with prejudice, meaning the agency cannot refile the same claims in the future. The case centered on allegations that the Gemini Earn program involved the offer of unregistered securities through a partnership with Genesis Global Capital.
A federal judge in the Southern District of New York is expected to formally approve the dismissal, which follows months of paused proceedings.
The SEC said it was satisfied after Gemini Earn investors received a full, in-kind return of their crypto assets through the Genesis bankruptcy process completed in mid-2024. In addition, Gemini agreed to contribute up to $40 million to support the complete recovery of customer funds. Genesis had previously settled with regulators by paying a $21 million civil penalty.
The case was originally filed in January 2023 during a period of intensified crypto enforcement. Its dismissal adds to a growing list of digital asset cases dropped since early 2025, reflecting a broader regulatory pullback and reassessment of crypto oversight by US authorities.
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