After Coinbase, SEC Drops Gemini Probe—Winklevoss Demands Firings, Compensation

The U.S. Securities watchdog ended its investigation into Gemini without filing enforcement charges, but the exchange’s Co-Founder, Cameron Winklevoss, isn’t letting it go.

In a fiery post on X, Winklevoss condemned the agency’s handling of the probe, arguing that it inflicted massive financial and economic harm. He now demands consequences, including public firings and financial recompense for companies targeted by similar investigations.

SEC Closes Gemini Investigation Without Charges

Gemini, the New York-based cryptocurrency exchange, was reportedly informed on Monday that the SEC had officially dropped its case. The investigation had been ongoing for years, consuming significant legal resources and adding to the regulatory uncertainty surrounding the crypto industry, according to the company.

However, rather than celebrating the outcome, Winklevoss expressed outrage, accusing the SEC of damaging both Gemini and the broader crypto sector.

“The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation. Of course, Gemini is not alone,” Winklevoss said.

On Monday, the SEC informed our litigation counsel @JackBaughman27 that it has closed its investigation into @Gemini and will not be pursuing an enforcement action against us. This comes 699 days after the start of their investigation and 277 days after they sent us a Wells… pic.twitter.com/dTjg9CJXVl

He argued that federal agencies should not be allowed to aggressively investigate companies only to later withdraw without consequences. His proposed remedy required agencies to reimburse defendants at three times their legal costs if they failed to establish wrongdoing.

He also called for all SEC staff members involved in the probe to be publicly fired, with their names and roles posted on the agency’s website. “Everyone involved in these actions should be fired immediately and in a public way. Their names, roles, and the actions they participated in should be posted on the SEC website,” he wrote.

Shifting Stance at the SEC

The agency recently ended investigations into Uniswap Labs, Robinhood Crypto, and OpenSea without filing charges. On the same day, it closed the Gemini case, the SEC also moved to pause its litigation against Tron Foundation and Justin Sun, mirroring its recent approach in lawsuits against Coinbase and Binance.

https://t.co/0iY0E7Mc9q pic.twitter.com/hVsGpnpNZd

These developments suggest a shifting stance at the SEC, potentially signaling a retreat from its aggressive enforcement approach against the crypto sector. However, for Winklevoss, the damage has already been done. He believes the agency’s actions have stifled innovation and cost the U.S. economy immeasurable opportunities.

“If an agency refuses to write rules before it opens an investigation or brings an enforcement action, the agency should have to reimburse you for 3x your legal costs,” Winklevoss continued.

“This would make you financially whole for the time and money you spent defending yourself against sham investigations and baseless enforcement actions that were only able to be brought because the agency didn’t write rules in the first place.”