Winklevoss Twins’ Gemini Settles CFTC Case with $5 Million Fine
Gemini Trust Co. will pay a $5 million fine to resolve claims by the CFTC regarding misleading statements about Bitcoin futures.
Winklevoss Twins, Gemini, CFTC, Bitcoin, New York, Cryptocurrency
New York: The Winklevoss twins’ company, Gemini Trust Co., has agreed to pay a hefty $5 million to wrap up a case with the Commodity Futures Trading Commission. They were accused of misleading the regulator while trying to launch the first U.S.-regulated Bitcoin futures contract.
This settlement was revealed in a court filing, which means they’ve avoided a trial that was set to kick off on January 21. That’s just a day after Donald Trump’s second inauguration. Interestingly, Gemini settled without admitting any wrongdoing.
The CFTC had filed the lawsuit back in 2022, claiming that Gemini made false statements about how they would prevent price manipulation in Bitcoin. This was crucial since those prices were supposed to be the basis for derivatives tied to the cryptocurrency.
This case is part of a broader effort by President Biden’s administration to tighten regulations on cryptocurrencies. Meanwhile, many in the crypto world are hopeful that Trump’s return might lead to friendlier regulations for the industry.
Back in late 2017 or early 2018, Gemini had to hand over laptops from two former executives as part of a related investigation, but that probe ended without any charges.
The case is officially known as Commodity Futures Trading Commission v. Gemini Trust Co., filed in the Southern District of New York.
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