SEC Drops Gemini Probe: Crypto Giant's $100M Legal Battle Ends

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into cryptocurrency exchange Gemini, with no enforcement action taken against the company. The SEC informed Gemini's litigation counsel on Monday that no action would be pursued, nearly two years after the investigation began. Cameron Winklevoss, co-founder of Gemini, shared the news on social media, expressing relief at the decision.

Gemini was initially accused of offering unregistered securities through its "Earn" program alongside crypto lender Genesis Global Capital in January 2023. However, the SEC clarified that the notice should not be interpreted as an exoneration, and future action based on the findings of the investigation remains possible.

Jack Baughman, Gemini's legal counsel, confirmed the news on X, stating that the SEC approached the investigation with a mission to shut down the crypto industry. He called for a complete rethink of how regulation is done at both the federal and state level.

While the investigation's closure is seen as a victory for Gemini, Cameron Winklevoss revealed the significant costs the company faced during the legal process. He estimated that Gemini's legal bills amounted to tens of millions of dollars, with hundreds of millions in lost productivity and innovation. Winklevoss argued that the SEC's aggressive stance toward the crypto industry has caused damage to the broader ecosystem and the American economy.

Gemini's case is not isolated; the SEC has also closed investigations into other crypto platforms like OpenSea, Coinbase, Robinhood, and UniSwap. Even with the investigation's conclusion, industry leaders have called for greater accountability within the SEC. The Winklevoss twins proposed several reforms, including the SEC paying back legal costs if it launches investigations without clear rules in place.