Winklevoss-twins-owned Gemini is on the firing line of the US regulator. The Commodity Futures Trading Commission (CFTC) is presently suing the crypto exchange for allegedly misleading the regulator when gaining approval for a Bitcoin futures product in 2017.
According to the CFTC, which filed a complaint in a New York court, Gemini Trust Company, LLC (Gemini) provided “false or misleading statements of material facts or omitting to state material facts” to the regulator.
Gemini’s Bitcoin future, which it launched in December 2017, proposed a price-settlement technique determined by an auction on the final day before expiration. The exchange, directly and through its designated contract market (DCM), allegedly summited false or misleading Bitcoin pricing data between July 2017 to December 2017 to the regulator.
Additionally, the regulator alleged that Gemini personnel “knew or reasonably should have known” about the false or misleading information the exchange was providing.
“Making false or misleading statements to the CFTC in connection with a futures product certification undermines the CFTC’s work to ensure the financial integrity of all transactions subject to the CEA, protect market participants, deter and prevent price manipulation, and promote responsible innovation and fair competition,” said the Acting Director of Enforcement at the CFTC, Gretchen Lowe.
Another Major Crypto Lawsuit
Moreover, the action against Gemini is one of the major US regulatory actions taking place in crypto space, given the reputation of the exchange. Furthermore, the CFTC recently settled with BitMEX and its Co-Founders for operating illegally in the US.
In a statement shared with the media, Gemini denied the allegation and highlighted its decision to indulge in a legal battle with the regulator.
“Gemini has been a pioneer and proponent of thoughtful regulation since day one,” a Gemini spokesperson said. “We have an eight-year track record of asking for permission, not forgiveness, and always doing the right thing. We look forward to definitively proving this in court.”
