Is the Lawsuit Over? Winklevoss Twins are Looking to Settle

In a significant development in the world of crypto regulation, billionaire Winklevoss Twins—Tyler and Cameron Winklevoss—may be nearing a resolution in their long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). 

The dispute centers around Gemini Earn, a crypto asset lending program offered by their company, Gemini Trust. 

A joint court filing on April 1, 2025, suggests that both sides are open to a possible settlement, sparking renewed interest in regulatory dynamics surrounding cryptocurrency investment products.

Let’s read how this legal batle of Winklevoss Twin with SEC will be settled in this article!

Background: Gemini Earn and the SEC Lawsuit

The SEC originally filed a lawsuit against Gemini Trust and Genesis Global Capital in January 2023, alleging that the companies failed to register Gemini Earn before offering it to retail investors. 

The Gemini Earn program allowed customers to lend their crypto assets, including Bitcoin, to Genesis in exchange for interest payments—while Gemini collected fees of up to 4.29%.

This arrangement, according to the SEC, bypassed federal disclosure requirements, exposing customers to risks without proper regulatory safeguards. 

The lawsuit came in the wake of Genesis halting withdrawals in November 2022, following the catastrophic collapse of FTX, the exchange run by Sam Bankman-Fried. 

By the time Genesis filed for bankruptcy in early 2023, it held an estimated $900 million in crypto assets from around 340,000 Gemini Earn users.

Read Also: Google’s New Gemini 2.5: How You Can Use It for Crypto Research

Latest Court Filing: A Pause for Resolution

In a joint letter submitted to Manhattan federal court on April 1, both Gemini and the SEC requested a 60-day pause on all court deadlines. 

The purpose? To allow both parties time to explore a potential resolution outside of court. While the letter did not confirm whether a settlement was on the table or if the SEC might consider dropping the case, the pause hints at meaningful negotiations underway.

At the time of writing, neither Gemini’s nor the SEC’s legal representatives had commented publicly on the court filing.

Previous Developments: Genesis Settles, Gemini Holds Firm

While Gemini has denied any wrongdoing, Genesis reached its own agreement with the SEC in March 2024, agreeing to pay a $21 million fine as part of its Chapter 11 bankruptcy proceedings. 

This settlement did not require Genesis to admit to any liability, but it marked the first formal resolution stemming from the Gemini Earn controversy.

Gemini, however, continues to defend its position, arguing that its role as a facilitator in the Earn program did not amount to issuing unregistered securities. 

The case remains a landmark example of how complex crypto lending relationships are treated under U.S. securities law.

Regulatory Landscape: SEC Softens Under Trump

Since Donald Trump took office as President in January 2025, the SEC has notably eased its oversight of the cryptocurrency sector. The agency has:

• Dropped lawsuits against major crypto exchanges like Coinbase and Kraken
  
   
• Settled with Ripple Labs over the unregistered sale of XRP tokens
  This shift marks a sharp contrast from the more aggressive enforcement actions seen during the Biden administration.

The pause in the Gemini lawsuit appears to align with the SEC’s broader trend of de-escalation, signaling a more industry-friendly approach under the current political climate.

Who Are the Winklevoss Twins?

The Winklevoss Twins, Tyler and Cameron, are among the most prominent figures in the cryptocurrency world. Famously known for their legal battle with Mark Zuckerberg over Facebook’s origin, the twins have since reinvented themselves as crypto pioneers. They co-founded Gemini Trust Company, a digital asset exchange and custodian, and have been active advocates for the regulatory legitimacy of cryptocurrency.

According to Forbes, each brother is currently worth $3 billion, and their Gemini platform remains one of the most reputable names in the U.S.-based crypto space.

Read Also: SEC Is Embracing Crypto! Considers Tokenized Securities Sandbox for Safer Crypto Trading

What Happens Next?

The court-ordered 60-day hold gives both Gemini and the SEC until early June 2025 to reach a resolution. If successful, this could lead to:

• A settlement that avoids further court battles
  
   
• Partial or full dismissal of charges
  
   
• Or, should talks fail, a resumption of litigation

For investors and regulatory watchers, the Gemini Earn lawsuit serves as a bellwether for how crypto finance products will be treated going forward.

Conclusion

The possible settlement between the Winklevoss Twins and the SEC could mark another step in the shifting relationship between crypto companies and U.S. regulators. As the industry evolves and political leadership changes, so too does the enforcement tone. 

Whether Gemini walks away with a settlement or continues its legal defense, the case underscores the growing importance of compliance, transparency, and negotiation in the digital asset space.

FAQ

Who are the Winklevoss brothers?

The Winklevoss twins, Tyler and Cameron Winklevoss, are American entrepreneurs, Olympic rowers, and prominent figures in the cryptocurrency industry. They are best known as the co-founders of Gemini Trust Company, a regulated crypto exchange based in New York. The twins first gained public attention for their legal battle with Mark Zuckerberg, claiming he stole their idea for Facebook.

How did the Winklevoss twins get rich?

The twins initially gained wealth from the $65 million settlement with Facebook (now Meta) over intellectual property disputes. They used part of this settlement to invest in Bitcoin in 2013, becoming early adopters and advocates of cryptocurrency. Their investment reportedly made them Bitcoin billionaires. They went on to found Gemini, one of the leading crypto exchanges in the U.S.

What is Gemini Earn and why did it lead to a lawsuit?

Gemini Earn was a product by Gemini that allowed users to lend crypto assets like Bitcoin to Genesis Global Capital in exchange for interest. 

Gemini acted as an intermediary, charging a fee as high as 4.29%. However, Genesis halted withdrawals in November 2022, during the broader crypto market crash, leaving users unable to access their funds. Around $900 million from 340,000 customers was trapped.

The U.S. Securities and Exchange Commission (SEC) sued both Gemini and Genesis in January 2023, alleging they failed to register the product as a securities offering, thereby violating investor protection laws.