The US Securities and Exchange Commission (SEC) and Gemini Trust Company filed a status update in court, letting a federal court know they had reached a “resolution in principle” to resolve a securities case stemming from a 2023 complaint.
In a Monday filing in the US District Court for the Southern District of New York (SDNY), the SEC and Gemini Trust said that, “subject to review and approval” by the commission, the two parties requested that all litigation in the civil case be indefinitely stayed.
The filing stated that both parties would file another status report if the case weren’t resolved by Dec. 15.
The securities case against Gemini Trust and Genesis Global Capital began with a complaint filed by the SEC in January 2023. The commission alleged that Genesis and Gemini “engaged in an unregistered offer and sale of securities to US retail investors” between February 2021 and November 2022.
The agreement in principle likely marked one of the last steps in the winding down of the case against the two firms after the SEC and Genesis announced a $21 million settlement in 2024.
The agency, then under acting SEC chair Mark Uyeda, told Gemini in February that it would not recommend pursuing an enforcement action as part of a separate investigation against the company.
Related: Gemini (GEMI) stock soars in Nasdaq debut amid crypto IPO boom
The securities case alleged that investors sent Genesis assets through Gemini’s Earn Program with the expectation that the company would pay interest. The SEC said that both companies raised “billions of dollars’ worth of crypto assets, principally from US retail investors,” without registering with the regulator.
“[I]nvestors lacked material information about the Gemini Earn program that would have been relevant to their investment decisions,” alleged the January 2023 complaint. “Instead of providing investors with the full panoply of information required by the federal securities laws, Defendants have instead only made selective and inadequate disclosures.”
Trump and Gemini: Partners in crypto policy?
Gemini co-founders Cameron and Tyler Winklevoss were financial and personal supporters of US President Donald Trump during his 2024 campaign and have continued to maintain close ties to the White House this year.
The twins were present during the signing of the GENIUS stablecoin bill, and reportedly pressed for Trump to reconsider the nomination of Brian Quintenz as chair of the US Commodity Futures Trading Commission.
The White House asked a Senate committee to delay a hearing on Quintenz’s nomination before it broke for an August recess, and, as of Monday, no other hearing had been scheduled.
Last week, Quintenz released screenshots of texts between himself and the Winklevosses from July that suggested they were looking for certain assurances regarding enforcement actions if his nomination were to move forward.
Gemini also began its initial public offering on Friday, reportedly raising $425 million with 15.2 million shares.
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