SEC Closes Gemini Investigation Without Accusation

In 2024, the SEC launched an investigation into Gemini by issuing a Wells Notice, but has now decided to close it without any charges. The regulator is dropping numerous lawsuits against crypto companies.

However, Cameron Winklevoss, Gemini's co-founder, said he was not happy with this attitude and suggested sanctions for the SEC if it promotes a new crackdown on cryptocurrencies in the future.

Gemini Free of SEC Chains

The Securities and Exchange Commission (SEC), the main financial regulator in the United States, recently filed several investigations against multiple companies, including Uniswap, Robinhood and OpenSea.

Gemini co-founder announced the closure of the case on X:

"On Monday, the SEC informed our lawyers that it has closed the investigation into @Gemini and will not be taking action against us. This comes 699 days after the investigation began and 277 days after the Wells Notice was sent. Although it represents another step towards the end of the war on cryptocurrencies, which has already seen the withdrawal of the lawsuit against Coinbase and the closure of the investigations into OpenSea, Robinhood and Uniswap, it does not compensate for the damage caused by this agency to our company, the crypto industry and America."

Winklevoss pointed out that despite the Wells Notice posting a year ago, the investigation never led to a formal indictment.

In addition to Gemini, the SEC is ending several legal battles against crypto companies. It closed the case against Coinbase and reached a settlement with TRON in a civil fraud case. The lawsuit against Ripple is also stalled, but remains open.

None of these decisions seems to have changed Cameron Winklevoss' opinion. In 2023, the SEC had sued Gemini and its partner company Genesis, imposing fines on both. Gemini paid $5 million, while Genesis had to pay $38 million.

In his latest post, Winklevoss had harsh words against the regulator:

"How many engineers have left the crypto industry or avoided it altogether because of these regulatory attacks? How many projects never got off the ground because founders and engineers preferred to build a startup in their dorm rather than face the SEC's regulatory maze? How many engineers chose other industries instead of contributing to the creation of an open, permission-free financial system? How many years of innovation were wasted at the expense of Americans? We will never know."

The proposals made by Winklevoss include triple reimbursement of legal fees by the SEC, a ban on SEC employees working in federal agencies, and other punitive measures.