The U.S. Securities and Exchange Commission (SEC) has, after what can only be described as an excruciatingly long and borderline melodramatic process, reached a tentative settlement with Gemini Trust, the crypto exchange run by the Winklevoss twins, Tyler and Cameron. The deal still needs to pass the SEC’s approval, but if everything goes according to plan (which it probably won’t), this could be the end of a saga that started back in 2023.
Background of the case
The SEC decided to get involved because Gemini apparently didn’t feel like properly registering its fancy new Gemini Earn lending program before offering it to regular folks. This program, launched in 2021, allowed customers to lend their precious bitcoin and other cryptocurrencies to Genesis Global Capital in exchange for interest rates. Gemini, meanwhile, collected fees as high as 4.29%. A pretty good deal, if you ignore the fact that, you know, it was probably illegal.
Things went south faster than you can say “FTX collapse” when Genesis, having seen better days, decided to suspend withdrawals in November 2022. This left 340,000 Gemini Earn customers holding the metaphorical bag, with roughly $900 million in assets tied up somewhere, probably in the digital ether, or at least in the abstract concept of “gone.”
Fast forward to January 2023, and the SEC decided to file a lawsuit, accusing Gemini and Genesis of completely ignoring the disclosure rules that were meant to protect unsuspecting investors. Meanwhile, Genesis decided to throw in the towel and settle, agreeing to pay a modest $21 million without admitting any wrongdoing. I mean, who doesn’t love a good settlement?
Settlement details
Fast forward to this Monday, and the lawyers for both parties finally put their pens down long enough to send a letter to the Manhattan federal court, confirming that the settlement would “completely resolve” the lawsuit. They also kindly asked U.S. District Judge Edgardo Ramos to pause all deadlines and give them until December 15 to finish the paperwork. Because why rush when you’ve spent years in legal purgatory?
Legal experts are now speculating that the fine might be somewhere between $10 million and $20 million-far lighter than what many initially feared. But hey, at least it’s less than the fines levied under the previous administration. Progress?
Market impact
The timing of the settlement news couldn’t have been more perfect for Gemini, which had just launched its IPO (because why not add some stock drama to the already-packed crypto circus?). The New York-based exchange raised a cool $425 million, valuing itself at a jaw-dropping $3.3 billion. In case you were wondering, Gemini shares are up by 16%, closing at $32.52. I mean, it’s almost like the crypto market isn’t dead, just… highly confused.
What’s next
If the SEC doesn’t suddenly get cold feet, this agreement will lift a huge legal burden off Gemini’s shoulders, clearing the path for future business expansion. As for investors, this case is a big, flashing neon reminder that crypto lending platforms are full of regulatory risks. But hey, at least now we all know the importance of disclosure rules. If only there was some kind of lesson in all of this… 🤷♂️
Read More
- LINK PREDICTION. LINK cryptocurrency
- Katanire’s Yae Miko Cosplay: Genshin Impact Masterpiece
- Wednesday’s Owen Painter Felt the Weird Vibes with Francoise Too
- Gold Rate Forecast
- USD PKR PREDICTION
- USD THB PREDICTION
- Here’s a look at Stardew Valley’s original concept. The 13 year old trailer shows just how much the game has changed
- NEXO PREDICTION. NEXO cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- Can’t launch Borderlands 4? The game crashes or shows black screen? There is something you can do
2025-09-16 08:22