The story of Gemini Earn, that lending program launched by the billionaire Winklevoss twins, Tyler and Cameron, just hit a final act.
After nearly two years of courtroom drama, the U.S. Securities and Exchange Commission and Gemini reached a settlement that’s gonna put this legal headache to bed.
FTX down, Genesis down, Earn down
Gemini Earn let people lend their crypto and earn interest. Sounds sweet, right?
But the SEC called it a wild stallion, an unregistered securities offering where Gemini sent customer funds over to Genesis, another player who paid the interest, while Gemini skimmed fees as high as 4.29%.
The regulators say Gemini forgot the fine print, they skipped vital disclosures that every proper securities deal needs.
At its peak, Earn was holding around $900 million from some 340,000 crypto fans.
Then the fallout: November 2022, Genesis slammed the brakes, freezing withdrawals right after the FTX fiasco shook the crypto world.
Genesis stumbled into bankruptcy, leaving Earn investors locked out, staring at their frozen funds like they’d lost their last pizza slice.
Gemini’s IPO
This mess wasn’t just a slap on the wrist, Genesis already coughed up a $21 million fine earlier this year, no admission of guilt, mind you.
Gemini’s been claiming innocence all along, and the SEC, under acting chair Mark Uyeda, even decided not to push enforcement in another inquiry back in February.
Still, this settlement means the twins and their exchange are keen to clear the air and shake off the legal dust before it gets messier.
Timing’s also important. Gemini raised $425 million in its IPO just days before this settlement news dropped, pushing the company’s value to about $3.3 billion. Shares popped 16% above the IPO price.
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Risks in crypto lending
For the crypto community, this is more than just courtroom drama. Gemini Earn became the symbol of risks lurking in crypto lending, with big promises but bigger payouts pending, until they weren’t.
Now the SEC’s signaling it’s ready to ease up on the heavy hammering, opting for negotiated deals instead of drawn-out battles.
Tyler and Cameron Winklevoss, worth roughly $4.6 billion each, have always pushed Gemini as the righteous regulated exchange, standing apart from the grey-zone reputation of some rivals.
This settlement? It’s the latest chapter in that narrative, regulatory smoke clearing, but with lessons loud and clear for investors wading through crypto’s choppy waters. Either way, this is a win.
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: September 17, 2025 • 🕓 Last updated: September 17, 2025
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