TLDR
- The SEC and Gemini Trust have reached a resolution in principle over a crypto lending dispute.
- Both parties have requested an indefinite stay in the civil case, subject to approval by the SEC.
- The SEC filed the original complaint in January 2023, accusing Gemini Trust and Genesis Global Capital of offering unregistered securities.
- Gemini Trust and Genesis raised billions in crypto assets from US retail investors without proper registration.
- In 2024, Genesis reached a $21 million settlement with the SEC, marking a significant step toward resolution.
The US Securities and Exchange Commission (SEC) and Gemini Trust Company have reached a “resolution in principle” in a securities case. This case stems from a complaint filed in January 2023. The parties notified the US District Court for the Southern District of New York (SDNY) about the development on Monday.
SEC and Gemini Request Indefinite Stay in Civil Case
The SEC and Gemini Trust jointly requested an indefinite stay of all litigation in the civil case. The request is subject to approval by the commission. Both parties stated they will file another status update by December 15 if the case is not resolved by then.
The SEC filed the original complaint in January 2023. It accused Gemini Trust and Genesis Global Capital of offering unregistered securities to US retail investors. According to the SEC, the companies raised billions in crypto assets from investors without proper registration.
Resolution Comes After $21 Million Settlement with Genesis
The resolution in principle marks a significant step toward resolving the case. In 2024, Genesis Global Capital reached a $21 million settlement with the SEC. This settlement likely played a role in moving the case toward closure.
Gemini Trust, which operated the Earn Program, allowed investors to send assets to Genesis. In return, they expected interest payments. However, the SEC alleged that the companies failed to provide essential information to investors about the risks involved.
The agreement in principle reflects the ongoing efforts to resolve the SEC’s investigations into Gemini Trust. In February, the SEC decided not to pursue an enforcement action against the company in a separate matter. If finalized, this resolution could bring an end to the lengthy legal dispute.
The post Gemini Trust and SEC Move Toward Resolution in Crypto Lending Case appeared first on Blockonomi.
Source: https://blockonomi.com/gemini-trust-and-sec-move-toward-resolution-in-crypto-lending-case/