EddieJayonCrypto
6 Jan 25
The Gemini Trust Company, which operates the Gemini crypto exchange founded by Tyler and Cameron Winklevoss, has agreed to pay a $5 million civil penalty to settle a Commodity Futures Trading Commission (CFTC) suit. The settlement, filed in court documents on Monday, allows Gemini to avoid a trial s...
Gemini Trust Company, the firm behind the Gemini crypto exchange founded by Tyler and Cameron Winklevoss, has agreed to pay a $5 million civil penalty to settle a Commodity Futures Trading Commission suit that alleged it misled regulators, court documents filed on Monday show. The proposed settlement allows Gemini to avoid a trial that was set to begin on January 21, as reported by Bloomberg. Gemini did not admit or deny wrongdoing in the settlement.
The CFTC sued the crypto company in 2022 for “making material false or misleading statements” in an effort to gain approval for its Bitcoin futures product. The 2022 lawsuit alleged that Gemini “knew or reasonably should have known” that the statements and information by the company were false or misleading regarding how a proposed Bitcoin futures contract could be susceptible to manipulation.
In the world of derivatives, the futures market involves betting on the future price of an asset such as Bitcoin. The first-ever Bitcoin futures contract to trade on the Cboe Futures Exchange back in 2017 used price data from the New York-based Gemini. Gemini offers digital asset services, including an exchange and custody service. The Winklevoss twins, behind Gemini, donated millions of dollars to President-elect Donald Trump’s campaign, expressing their desire to end the Biden Administration’s regulatory actions against crypto businesses.