Gemini to Pay $5 Million to Settle CFTC Claim Regarding Bitcoin Futures

Investing.com -- Gemini Trust Co., owned by the Winklevoss twins, has agreed to pay $5 million to resolve the Commodity Futures Trading Commission's (CFTC) demand, which claims that the company misled the derivatives regulator in its attempt to launch the U.S.'s first regulated Bitcoin futures contract.
The proposed settlement was announced in a joint court filing by both parties on Monday. This move avoids a lawsuit set to begin on January 21, the day after President Donald Trump's second inauguration. Gemini settled the case without admitting or denying liability.
The CFTC originally filed a lawsuit against Gemini in 2022 in a Manhattan federal court, alleging that Gemini made false and misleading statements about its measures to prevent Bitcoin price manipulation. These prices were intended to be used as a reference for derivative products based on the cryptocurrency.
The civil enforcement case against Gemini Trust is one of the steps taken by President Joe Biden's administration to establish regulatory authority over cryptocurrencies. Many crypto advocates praised Trump’s election, expecting his administration to support more industry-friendly regulations.
At the end of 2017 or early 2018, Gemini complied with a subpoena to deliver the laptops of two former executives. This was part of a related criminal investigation that concluded without any charges being filed.

This article has been generated with the assistance of artificial intelligence, translated, and reviewed by an editor. For more information, please refer to our Terms and Conditions section.