In a court filing Friday (Jan. 23), the Securities and Exchange Commission (SEC) asked a judge to dismiss the suit, stemming from the collapse of an investment product known as Gemini Earn. The SEC argued that Gemini had settled a 2023 lawsuit brought by the state of New York, which had accused the company of defrauding investors. Since then, Gemini has settled with New York, with investors having received “one hundred percent of the crypto assets they had loaned to Gemini through the Gemini Earn program in kind.” The SEC’s request is the latest in a series of steps the commission has taken to roll back earlier actions against the crypto industry filed under President Joe Biden.
Gemini, headed by billionaire twin brothers Cameron and Tyler Winklevoss, announced plans to go public last year with the goal of raising $316.7 million. The company said at the time it plans to market 16.7 million shares for $17 to $19 each in its initial public offering (IPO), giving it a market value of a little more than $2.2 billion. More recently, Gemini’s affiliate Gemini Titan made its prediction markets platform available to customers in the U.S. The debut of the Gemini Predictions platform came one week after the company obtained a Designated Contract Market (DCM) license from the Commodity Futures Trading Commission (CFTC).
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