Winklevoss Twins Strike Settlement With SEC Over Gemini Earn Program

The US SEC has settled with Gemini, the crypto exchange founded by billionaire twins Tyler and Cameron Winklevoss, over its troubled Gemini Earn lending program.

In a letter filed in Manhattan federal court on Monday, lawyers for the SEC and Gemini said they had agreed in principle to “completely resolve” the lawsuit, pending approval by the commission.

They asked Judge Edgardo Ramos to pause all deadlines and allow them until Dec. 15 to submit final paperwork.

Investors Locked Out of Funds as Genesis Shut Down

The settlement ends nearly two years of legal wrangling. The SEC first sued Gemini and Genesis Global Capital in Jan. 2023, accusing the two firms of offering unregistered securities through the Gemini Earn program, which allowed customers to lend crypto assets in exchange for interest.

According to Reuters, the U.S. Securities and Exchange Commission (SEC) has reached a preliminary settlement with Gemini Trust, the cryptocurrency platform founded by billionaire twins Tyler and Cameron Winklevoss, to fully resolve the agency’s lawsuit over the Gemini Earn…

— Wu Blockchain (@WuBlockchain) September 15, 2025

At its peak, the Earn program had attracted about $900m, from 340,000 customers.

Genesis froze withdrawals in Nov. 2022, days after the collapse of Sam Bankman-Fried’s FTX exchange shook the sector. Two months later Genesis filed for bankruptcy, leaving Earn investors unable to access their funds.

The Earn program’s model involved sending customer assets to Genesis, which paid interest, while Gemini collected fees of up to 4.29%. The SEC alleged this amounted to an unregistered securities offering, saying investors were denied critical disclosures required under federal law.

Genesis settled with the SEC earlier this year, agreeing to pay a $21m fine without admitting wrongdoing. Gemini has consistently denied the allegations. The agency under acting chair Mark Uyeda also told Gemini in February that it would not recommend enforcement action in a separate inquiry.

Settlement Announced Days After Gemini’s $425M IPO

The Winklevoss twins, both 44, are worth an estimated $4.6b each, according to Forbes. They founded Gemini in 2014 and have positioned it as a regulated, mainstream exchange, often contrasting it with rivals that embraced riskier practices.

The settlement disclosure came just days after Gemini raised $425m in its initial public offering, valuing the New York-based firm at about $3.3b. Shares rose 52 cents on Monday to close at US$32.52, 16% above their IPO price of $28.

The resolution marks another step in clearing away legal uncertainty around Gemini Earn, a product that became emblematic of the risks in crypto lending. It also signals the SEC’s willingness to close out some of its most prominent cases against the industry at a time when US policy is shifting.

The securities regulator has eased its approach to the crypto sector since President Donald Trump took office in January. For the industry, the Gemini settlement shows that while penalties remain steep, regulators are open to negotiated outcomes.