The U.S. Securities and Exchange Commission (SEC) has officially concluded its civil lawsuit against Gemini Trust Company, resulting in a dismissal with prejudice. This outcome follows Gemini’s commitment to allocate $40 million to ensure the complete recovery of assets lost by investors in the Gemini Earn program due to the Genesis bankruptcy.

Court documents reveal that the involved parties submitted a stipulation to dismiss the action on a Friday in the U.S. District Court for the Southern District of New York, marking the resolution of the SEC’s allegations against Gemini’s crypto lending partnership with Genesis. While a federal judge still requires to finalize the dismissal, the SEC’s contentment stems from the thorough return of Gemini Earn investors’ crypto assets as a consequence of the Genesis bankruptcy proceedings in mid-2024.

Genesis has already settled with the SEC, agreeing to a $21 million penalty.

This lawsuit was initiated against the Winklevoss-led Gemini and Genesis in January 2023 amidst an intensified effort by the Biden administration to regulate the cryptocurrency sector.

SEC’s Ongoing Withdrawals of Cases

The dismissal of Gemini’s lawsuit is part of a developing trend in which multiple crypto-related cases have been retracted by U.S. government agencies since the commencement of the Trump administration in January 2025, which has advocated for deregulating the cryptocurrency market.

Previously dropped cases include significant players in the industry like Binance and Kraken. Additionally, the Department of Justice recently nullified its insider trading case against Nathaniel Chastain, a former manager at OpenSea, following appellate court intervention regarding earlier convictions.