Gemini
$168.59M
and the US Securities and Exchange Commission (SEC) have informed a federal court in Manhattan that they have reached a preliminary agreement, which could bring their ongoing legal case to an end.
This update was shared with the court in a letter, in which both parties requested a pause in all case deadlines until December 15.
Though the recent filing did not include exact settlement terms, it indicated that discussions between the parties have progressed far enough to pause active litigation. This kind of preliminary deal, known as a resolution “in principle”, triggers a set of formal steps.
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First, the SEC staff and the parties involved must sign a proposed agreement within 15 business days. Then, the staff forwards this offer, along with a recommendation, to the full Commission within 20 business days.
However, the settlement will not take effect unless the Commission agrees to it through a formal vote. If that approval does not happen, the pause on legal proceedings ends, and the case will continue.
The case began in January 2023 when the SEC took action against Gemini and its former business partner, Genesis Global Capital.
The regulator claimed that the two companies had offered investment products without proper registration through Gemini’s Earn program. This program allowed users to earn interest on their crypto holdings.
The situation escalated when Genesis went bankrupt later in 2023, which left around $900 million of customer funds inaccessible. Since then, the case has involved regulatory enforcement and bankruptcy court proceedings.
Recently, Brian Quintenz published private text messages exchanged with the Gemini founders, Cameron and Tyler Winklevoss. What happened? Read the full story.
