SEC and Gemini Trust Reach Resolution in Securities Case
- The SEC and Gemini Trust filed a status update in the US District Court for the Southern District of New York, indicating a “resolution in principle” for a securities case initiated in January.
- Both parties requested an indefinite stay of litigation, pending review and approval by the SEC, with a follow-up report due by December 15 if unresolved.
- The case involves allegations that Genesis Global Capital and Gemini conducted unregistered sales of securities from February 2021 to November 2022.
- Gemini’s Earn Program was cited as raising billions from US retail investors without proper registration or adequate disclosures.
- Gemini co-founders Cameron and Tyler Winklevoss have maintained close ties with political figures, including involvement in crypto policy discussions during Trump’s administration.
This resolution marks a significant step towards resolving legal challenges faced by Gemini Trust related to its Earn Program, which allegedly misled investors about material information regarding their investments. The outcome could influence future regulatory actions within the cryptocurrency sector.
As part of this process, both parties aim to finalize terms following extensive negotiations since the SEC’s initial complaint over unregistered securities offerings involving billions raised from investors.(Source)
