Gemini, a cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has agreed to pay $5 million to settle a case with the U.S. Commodity Futures Trading Commission (CFTC). The case involved allegations that Gemini made misleading statements about the manipulation of bitcoin futures contracts over seven years ago.
The settlement was announced in a letter from CFTC attorney K. Brent Tomer. Notably, Gemini did not admit or deny any wrongdoing. A trial was scheduled to begin on January 21, but this will no longer take place due to the settlement.
The CFTC’s lawsuit, filed in 2022, claimed that Gemini misled regulators during meetings in 2017. As part of the settlement, Gemini must adhere to an injunction that prevents them from making false or misleading statements to the CFTC in the future. Such injunctions are standard in settlements with federal regulators.
In addition to this case, Gemini is also facing legal challenges from the Securities and Exchange Commission (SEC). A judge ruled in March that the SEC could proceed with a lawsuit against Gemini for alleged violations of securities laws.
The regulatory environment for cryptocurrency exchanges in the U.S. has been tense, with several exchanges, including Coinbase and Binance, facing lawsuits for similar violations.
