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Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, has agreed to pay $5 million to settle a lawsuit filed by the Commodity Futures Trading Commission (CFTC).
The lawsuit alleged that Gemini provided misleading information in its attempt to secure approval for the first U.S.-regulated Bitcoin futures contract. As reported by Bloomberg, the agreement, finalized on January 6, avoids a trial initially scheduled for later this month. Notably, Gemini settled without admitting or denying liability.
Allegations Against Gemini
The lawsuit, initiated in 2022, accused Gemini of making false statements to regulators concerning measures to prevent manipulation of Bitcoin price data. This data was intended to serve as a benchmark for derivative products.
Notably, U.S. District Judge Alvin Hellerstein ruled in November that a jury would need to determine whether statements made by Gemini executives were indeed misleading.
According to Bloomberg, the case reflects broader regulatory actions under President Joe Biden’s administration, which has sought to tighten oversight of crypto. The settlement approval comes amid a backdrop of shifting political and regulatory landscapes, with former President Donald Trump set to begin his second term later this month.
Continued Legal Challenges
Meanwhile, this settlement is not the only legal issue confronting Gemini. The exchange is also battling a lawsuit by the U.S. Securities and Exchange Commission (SEC) over allegations of raising billions of dollars in crypto assets through its Gemini Earn program.
As part of a separate settlement with New York regulators earlier this year, Gemini agreed to repay over $1 billion to affected customers.
Between 2017 and 2018, Gemini handed over subpoenaed laptops from two ex-executives as part of a related criminal investigation. Notably, the investigation subsequently closed without any charges filed.
Controversy Over Asset Listings
Simultaneously, two weeks ago, Gemini faced criticism from the Cardano community over its decision to list the Solana-based meme coin Chill Guy while continuing to exclude Cardano (ADA).
This decision has sparked frustration among ADA supporters, who noted that Cardano remains a top-ten cryptocurrency by market capitalization with significant trading volumes. Cardano founder Charles Hoskinson also expressed discontent through social media, amplifying community sentiments about Gemini’s listing priorities.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
