SEC Closes Gemini Investigation Without Charges, Sparking Criticism from Winklevoss

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Gemini, the well-known cryptocurrency exchange, without pursuing any charges.

This marks the end of a two-year probe that cost the company millions in legal fees and stunted its ability to innovate.

Despite the SEC’s decision to close the case, Gemini’s co-founder, Cameron Winklevoss, expressed anger, criticizing the prolonged scrutiny and the resulting financial burden it placed on his company and the broader crypto industry.

Winklevoss pointed out that the investigation, which started almost two years ago, had drained substantial resources and created unnecessary delays.

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He also demanded that those responsible for initiating the costly and unfounded inquiry be held accountable. Winklevoss even suggested that regulators should compensate companies for legal expenses in cases where investigations have no merit.

This closure is part of a broader trend where the SEC has recently dropped multiple investigations into major crypto firms, signaling a shift in its regulatory strategy.

This move contrasts with the aggressive stance the agency took under former chair Gary Gensler, raising questions about how the SEC will proceed in the future. While some in the crypto space see this as a potential thawing of relations, others, like Winklevoss, remain wary of the damage already done.

Alexander Stefanov