Gemini Settles CFTC Lawsuit Over Bitcoin Futures Contract Launch Misrepresentations

Gemini Trust Co., owned by the Winklevoss twins, has agreed to pay $5 million to settle a claim by the Commodity Futures Trading Commission (CFTC).

Cryptocurrency exchange Gemini settles CFTC claim over Bitcoin futuresUPI

UPIUPI logoUPI, Jan 16, 2024

UPI — Cryptocurrency exchange Gemini Trust Co. has agreed to pay $5 million to settle a claim by the Commodity Futures Trading Commission over its attempt to launch the first U.S.-regulated Bitcoin futures contract, according to a joint court filing on Monday.

The proposed settlement, which was filed in Manhattan federal court, comes ahead of a trial that was scheduled to begin on Jan. 21 -- the day after Donald Trump's second term inauguration as U.S. president.

Gemini settled the case without admitting or denying liability. The Commodity Futures Trading Commission initially sued the exchange in 2022, alleging that it misled the derivatives regulator in its bid to launch the futures contract.

The Commodity Futures Trading Commission claimed that Gemini made false and misleading statements about its measures to prevent manipulation of the Bitcoin prices, which were to serve as a reference for the derivatives.

The civil enforcement case against Gemini is among several actions by President Joe Biden's administration to establish regulatory authority over cryptocurrencies.

Many crypto advocates cheered Trump's election, expecting his administration to support more industry-friendly regulation.

In late 2017 or early 2018, Gemini turned over subpoenaed laptops from two former executives as part of a related criminal investigation, which concluded without any charges being filed.