The Winklevoss twins just caught a major break. Gemini and the SEC have apparently worked out a deal to settle that messy lawsuit over their Earn program, which honestly couldn’t have come at a better time for the company.
This whole mess started back when Genesis went belly up and froze $900 million worth of customer money. People had been lending their Bitcoin and other crypto through Gemini Earn to Genesis, expecting to get nice interest payments. Instead, they got stuck holding the bag when Genesis filed for bankruptcy in early 2023.
The SEC wasn’t happy about how the whole thing was set up, claiming Gemini and Genesis didn’t follow the proper disclosure rules. Genesis ended up paying a $21 million fine to make the problem go away, but Gemini kept fighting the charges. Now it looks like they’re ready to call it quits too.
The timing here is pretty interesting because this news comes right after Gemini’s IPO went absolutely bonkers. They raised $425 million and their stock is already up 16% from where it started trading. Having this legal cloud hanging over them probably wasn’t doing the share price any favors.
With Trump back in office and the SEC taking a lighter touch on crypto, it makes sense that Gemini would want to clean up this old baggage and move forward.
Conclusion
All in all, Gemini’s settlement marks a turning point-shedding past baggage, calming investor nerves, and aligning with a friendlier regulatory climate. With its IPO momentum, the company is well-positioned to push ahead with fresh confidence.
Also Read: Gemini Raises IPO
