The U.S. Securities and Exchange Commission (SEC) has reached a settlement with the Winklevoss brothers’ Gemini over a lawsuit related to the defunct Earn yield product.
In January 2023, the regulator accused the crypto exchange of offering unregistered securities through its lending program. Earn users received up to 8% annual returns on cryptocurrency deposits.
In mid-November 2022, the exchange suspended payments under the program. This occurred amid financial difficulties of its main partner, the OTC platform Genesis Global Capital. The firm owed Gemini $900 million in client funds provided as loans.
In February 2024, the exchange committed to returning $1.1 billion to Earn users as part of a settlement with the New York State Department of Financial Services (NYSDF). Later, the platform announced it would reimburse 100% of client assets in the program, totaling $2.18 billion.
Following a leadership change at the SEC in early 2025, the agency decided to discontinue the administrative case against the exchange. In April, the parties requested a 60-day delay in the lawsuit to explore a potential settlement.
Under the agreement reached, the Commission sees no grounds to continue the process, as Earn clients have recovered 100% of their assets through Genesis’s bankruptcy proceedings.
Gemini agreed to contribute $40 million to fund the repayment procedure as part of settling NYSDF claims.
Genesis also settled with the SEC, paying a $21 million fine.
In September 2025, Gemini conducted an IPO, raising $425 million.
