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SEC drops case against Gemini after investors fully recovered crypto assets without liquidation.
The U.S. Securities and Exchange Commission has dismissed its enforcement case against cryptocurrency exchange Gemini after all investors in its Gemini Earn lending program fully recovered their digital assets through the bankruptcy of Genesis Global Capital.
The SEC cited the complete in-kind return of crypto holdings between May and June 2024 as the reason for the dismissal, noting that the recovery was achieved without liquidating assets.
The case, originally filed in 2023 over allegations of unregistered securities sales involving $940 million in assets, marks a rare instance where full restitution led to regulatory closure.
The decision does not indicate a broader shift in the SEC’s stance but reflects its growing emphasis on investor recovery in enforcement actions.
La SEC abandona el caso contra Gemini después de que los inversores recuperaron completamente los criptoactivos sin liquidación.