SEC Drops Case Against Winklevoss Twins' Crypto Exchange

The SEC dismissed its enforcement case against Gemini, founded by the Winklevoss twins, after investors recovered assets through the Genesis Global Capital bankruptcy. The SEC's crypto enforcement approach has changed under Trump, and Gemini has shown institutional adoption with its Nasdaq debut.

The U.S. Securities and Exchange Commission (SEC) has agreed to withdraw its enforcement action against Gemini, a cryptocurrency exchange founded by billionaire twins Tyler and Cameron Winklevoss. The decision follows the full recovery of assets by investors in its Gemini Earn lending program.

Legal documents filed in Manhattan federal court indicated that Gemini returned investors' crypto assets through the Genesis Global Capital bankruptcy process. This comes after SEC accusations in 2023 that Gemini and Genesis Global Capital illegally sold securities via a lending program, affecting numerous investors.

Under the administration of U.S. President Donald Trump, the SEC has adapted its stance on cryptocurrency enforcement, promoting a more favorable regulatory environment. Gemini, which debuted on Nasdaq amid increasing digital asset optimism, now holds a valuation of $1.14 billion.

(With inputs from agencies.)