SEC just waved the white flag on Gemini, so the three-year brawl is over.
The good news? Investors got every penny back, crypto included.
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Gemini Earn Drama Ends in SEC Victory Lap
Back in 2023, SEC swung hard at Gemini over Earn program shenanigans. They claimed it peddled unregistered securities, lending customer crypto to Genesis Global Capital.
Then FTX imploded in 2022, Genesis froze $940 million in assets, and winter hit crypto like a freight train.
Fast forward now, court filing January 23, seals the deal. SEC and Gemini finally agree to ditch the case, and regulators cite full in-kind crypto returns via Genesis bankruptcy from May-June 2024. No more need to chase ghosts.
Why SEC Gemini Case Dismissal Hits Hard
Gemini crows, customers whole again, thanks to Winklevoss twins’ hustle.
New York regulators settled too, after Genesis coughed up $21 million SEC fine. Big win in Trump’s 2026 era, stacking with Mark Cuban’s class-action toss-out.
This isn’t chump change. Earn held nearly a billion in frozen funds at peak panic.
Full payback flips the script, regulators blink first after restitution lands. Quite similar how the 2022-23 crackdown frenzy was, SEC nailed Coinbase, Binance with billion-dollar suits.
Yet here, outcomes shift, full refunds kill the fight, like calling off dogs once the steak’s returned.
Signals crypto clawing back legal ground. Investors repaid 100% in-kind? That’s the golden ticket, proving bankruptcy pipes can deliver.
And there’s another big win, because it’s clears Gemini to chase CFTC nod for prediction markets, hot on heels of rivals eyeing event bets beyond spot trades.
Gemini’s Hot Streak Post-SEC Gemini Case
And what about timing? Chef’s kiss. Gemini just snagged CFTC greenlight for prediction markets.
Exchanges race to tap that goldmine, ditching plain trading for high-stakes bets.
Federal judge shot down Gemini’s early dismissal bid, but tides turned. Acting chair Mark Uyeda paused things last April, now, full circle.
Gemini Win = Industry Win?
SEC’s call? Their discretion, heavy on the payback proof. Case shelved for good. Not so surprising that crypto news buzzes with the first major 2026 courtroom win.
Watch the dominos, because experts say more suits might crumble with refunds in play. Finally, institutions breathe easier, and Gemini eyes expansion.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: January 26, 2026 • 🕓 Last updated: January 26, 2026
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