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Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, reached an agreement on January 6 to pay a civil penalty of $5 million, settling a lawsuit filed by the Commodity Futures Trading Commission (CFTC) regarding alleged misleading statements.
Gemini and CFTC Settle Deceptive Statements Case
The settlement, submitted in the U.S. District Court for the Southern District of New York, details a proposed consent order aimed at resolving all claims against Gemini.
GEMINI SETTLES WITH CFTC FOR $5M OVER 2017 BITCOIN FUTURES DISPUTE
Thus, Gemini is incurring a $5M penalty to settle with the CFTC following questionable claims made in 2017.
The CFTC accused the Winklevoss-led exchange of misrepresenting information while attempting to secure their bitcoin futures contract… pic.twitter.com/YS9yhaKudZ— Mario Nawfal’s Roundtable (@RoundtableSpace) January 6, 2025
According to a Bloomberg report, the order will enable Gemini to avoid a civil trial that was initially set for January 21.
This trial originated from the CFTC’s 2022 lawsuit, which claimed that Gemini provided false or misleading information during the evaluation of its Bitcoin futures product.
The CFTC asserted that between July 2017 and December 2017, Gemini made incorrect statements regarding whether its proposed Bitcoin futures contract would be “readily susceptible to manipulation.”
Additionally, the lawsuit pointed out that Gemini engaged in undisclosed pricing arrangements with specific market participants, such as market makers.
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These arrangements, intended to enhance trading in Gemini’s Auction, were not disclosed to all customers or made available on the company’s website.
Under the terms of the settlement, Gemini has agreed to pay a $5 million penalty and refrain from making false or misleading statements to the CFTC in the future.
While consenting to the settlement, Gemini neither admitted nor denied the allegations.
CFTC’s Broader Crackdown on Crypto Misconduct
The conflict between Gemini and the CFTC is part of the agency’s wider efforts to address misconduct within the cryptocurrency sector.
The @CFTC announced a record-setting $17.1 billion in financial recovery for fiscal year 2024, primarily driven by crypto enforcement actions.#CFTC #Cryptohttps://t.co/zLXJe5kf4q
— Cryptonews.com (@cryptonews) December 5, 2024
In 2024, the CFTC reported recovering over $17 billion in civil penalties, disgorgement, and restitution across various cases involving crypto firms accused of breaching U.S. commodities laws.
The post Gemini Settles with CFTC for $5M Over Deceptive Bitcoin Futures Statements appeared first on Cryptonews.
