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Gemini Agrees to Pay $5M Settlement in CFTC Case

The Commodity Futures Trading Commission sued Gemini in 2022 for making misleading statements.

Автор Camomile Shumba|Редактор Sheldon Reback, Nikhilesh De
Обновлено 7 янв. 2025 г., 2:17 p.m. Опубликовано 7 янв. 2025 г., 11:57 a.m. Переведено ИИ
Gemini, co-founders Cameron and Tyler Winklevoss at Bitcoin convention (Joe Raedle / Getty Images)
Gemini, co-founders Cameron and Tyler Winklevoss (Joe Raedle / Getty Images)

What to know:

  • Crypto exchange Gemini agreed to pay $5 million to settle a case with the U.S. Commodity Futures Trading Commission.
  • The CFTC alleged in 2022 that Gemini made misleading statements about how easily Bitcoin futures could be manipulated.

Crypto exchange Gemini agreed to pay $5 million to settle a case with the U.S. Commodity Futures Trading Commission over allegedly misleading statements it made more than seven years ago about how easily the price of a bitcoin futures contract could be manipulated.

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Cameron and Tyler Winklevoss' exchange settled without admitting or denying liability, according to a letter on Monday from the CFTC's attorney, K. Brent Tomer. A trial for the case had been set to start Jan. 21, but that will no longer proceed.

The CFTC sued Gemini in 2022, alleging it had misled the U.S. regulator during in-person meetings that occurred in 2017.

Part of the deal also included an injunction to prevent Gemini from making false or misleading statements to the commission in the future. These types of injunctions are common in settlements or lawsuits by federal securities and commodities regulators.

Gemini also faces another case with the Securities and Exchange Commission (SEC). A judge ruled in March that the SEC could sue the exchange for violating securities laws.

In the absence of legislation relating specifically to the crypto industry, U.S. regulators have sued a number of crypto exchanges, including Coinbase and Binance, for violating securities laws.

Many observers have said pro-crypto comments made by President-elect Donald Trump indicate he will appoint regulators with a less confrontational attitude to the industry and a reduction in so-called regulation by enforcement.

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Crypto CEOs Join U.S. CFTC's Innovation Council to Steer Market Developments

CFTC Acting Chairman Caroline Pham speaks at SEC (Jesse Hamilton/CoinDesk)

The chief executives of firms such as Gemini and Kraken will pitch in on U.S. policy efforts through the council's future, public discussions.

What to know:

  • In her final days atop the agency, Commodity Futures Trading Commission Acting Chairman Caroline Pham announced her CEO Innovation Council, replete with crypto executives.
  • The names include the chief executives from Gemini, Kraken, Polymarket, Bitnomial and several others.
  • The CFTC is expected to get its permanent chairman very soon when the Senate votes on the confirmation of Mike Selig, President Donald Trump's nominee.