U.S. SEC and Gemini Request 60-Day Pause in Lawsuit for Possible Resolution
The U.S. SEC-Gemini lawsuit may find a resolution as both parties have asked the court for a delay to explore a potential settlement.
In a joint motion filed by the U.S. Securities and Exchange Commission (SEC) and Gemini on April 1, 2025, they proposed a 60-day pause in the lawsuit to consider a settlement and submit a joint status report within that period.
The SEC-Gemini legal battle began in January 2023 when the regulator filed charges against Gemini and crypto lender Genesis Global Capital, alleging they raised billions of dollars through the Gemini Earn program.
Shortly after Genesis filed for bankruptcy, Gemini Earn users were unable to withdraw their funds. Customer assets were frozen in late 2022, and according to the SEC, around 340,000 investors who had lent approximately $900 million through the program were affected. As a result, Gemini shut down its Earn program.
Gemini, in turn, sued Genesis for failing to return shares that were meant to serve as collateral for Gemini Earn loans. Last year, Genesis reached a settlement with Gemini Trust, agreeing to return $2 billion in assets to 232,000 Gemini customers.
When the SEC-Gemini case began, Tyler Winklevoss expressed his concerns on X (formerly Twitter), stating that they were working to recover customer funds while the legal action did nothing to help users regain their assets.
After President Trump’s election and the resignation of former SEC Chair Gary Gensler, the agency eased its scrutiny of the sector. In February 2025, the SEC informed Gemini that it had closed its investigation into the exchange and would not pursue enforcement action against them.
In June 2024, the New York Attorney General secured a $50 million settlement with Gemini to help recover investor funds.
After the administration change in the U.S., the SEC dropped several lawsuits, including cases against Uniswap, ConsenSys, Kraken, Cumberland, and others. In March 2025, the long-running SEC vs. Ripple case, which began in December 2020, was also settled.
With a resolution to the Gemini case on the horizon, the company is considering an Initial Public Offering (IPO), according to a Bloomberg report from February 2025.
Settling the case will allow Gemini to move forward with its plans and expand its offerings to investors.
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