TechFlow news, September 16 — According to The Block, the U.S. Securities and Exchange Commission (SEC) has reached a "preliminary settlement" with cryptocurrency exchange Gemini over a years-long lawsuit.
Court filings submitted Monday by lawyers for both parties to Judge Edgardo Ramos of the U.S. District Court for the Southern District of New York show that a preliminary settlement agreement has been reached, which will fully resolve the litigation pending review and approval by the Commission. Both parties have also requested a pause on all pending deadlines.
The SEC filed suit against Genesis Global Capital and Gemini in January 2023, alleging they conducted unregistered offers and sales of securities to retail investors through the Gemini Earn program. The program was launched in 2021 by Gemini, led by the Winklevoss brothers, allowing customers to lend their cryptocurrencies to Genesis Global Capital—now bankrupt—in exchange for annual yields as high as 7.4%.
