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The Commodity Futures Trading Commission sued Gemini in 2022 for making misleading statements.
Jan 7, 2025, 11:57 a.m. UTC
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.
Cameron and Tyler Winklevoss' exchange settled without admitting or denying liability, according to a letter 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.
Camomile Shumba
Camomile Shumba is a CoinDesk regulatory reporter based in the UK. Previously, Shumba interned at Business Insider and Bloomberg. Camomile has featured in Harpers Bazaar, Red, the BBC, Black Ballad, Journalism.co.uk, Cryptopolitan.com and South West Londoner. Shumba studied politics, philosophy and economics as a combined degree at the University of East Anglia before doing a postgraduate degree in multimedia journalism. While she did her undergraduate degree she had an award-winning radio show on making a difference. She does not currently hold value in any digital currencies or projects.
