Gemini and the U.S. Securities and Exchange Commission (SEC) have reached a tentative settlement in the lawsuit over the company’s now-defunct Earn program, according to a recent court filing in Manhattan federal court.
Lawyers for both sides said they had reached an agreement “in principle” to fully resolve the case. The filing, submitted to U.S. District Judge Edgardo Ramos, requests that court deadlines be paused until December 15 while the parties finalize the terms. Neither Gemini nor the SEC has issued public comments on the matter. The development was first reported by Reuters on September 16.
Background: Gemini Earn and the Genesis Collapse
Launched to allow users to earn interest by lending crypto assets like Bitcoin to Genesis Global Capital, Gemini Earn attracted hundreds of thousands of customers. Gemini earned fees of up to 4.29% on the program.
However, the program unraveled in November 2022 when Genesis froze withdrawals in the wake of FTX’s collapse. By January 2023, Genesis had filed for bankruptcy, trapping approximately $900 million in assets from around 340,000 Gemini Earn users.
The SEC filed suit against both Gemini and Genesis that same month, accusing them of offering unregistered securities and failing to comply with investor disclosure rules. Genesis settled with the SEC in February 2024, agreeing to pay a $21 million fine without admitting wrongdoing. Gemini, however, continued to challenge the allegations—until now.
While the settlement terms are not yet public and remain subject to final SEC approval, the agreement signals an impending resolution to one of Gemini’s most high-profile legal battles.
Strategic Timing Amid IPO and Regulatory Shifts
The timing of the settlement comes shortly after Gemini’s successful initial public offering (IPO), in which the company raised $425 million at a $3.3 billion valuation. Shares have since risen to $32.52, up 16% from their $28 debut.
The move reflects Gemini’s effort to close the chapter on its Earn-related legal troubles as it positions itself as a leading player among publicly traded crypto exchanges. It also coincides with a more lenient regulatory stance from the SEC since Donald Trump’s return to the White House in January 2025, a shift that has broadly benefited the crypto industry.
For co-founders Tyler and Cameron Winklevoss—each now reportedly worth $4.6 billion—the potential settlement removes a significant legal cloud as Gemini enters its next phase of growth.
