CFTC Charges Resolved: Cryptocurrency Exchange Gemini Closed $5 Million Deal in Proposed Order

In a major advance for the cryptocurrency sector, Gemini Trust, headed by Winklevoss twins Tyler and Cameron Winklevoss, has agreed to pay $5 million to resolve allegations brought by the Commodity Futures Trading Commission (CFTC).

Gemini addresses CFTC allegations of fraud in launch of Bitcoin futures

According to Bloomberg a reportThe agreement seeks to address allegations that the exchange deceived the regulator as it attempted to launch its inaugural US-regulated bitcoin futures contract.

The proposed agreement was revealed in a joint court filing on Monday, preventing the trial that was scheduled to begin on January 21, coinciding with the inauguration of Donald Trump for the second time as President of the United States.

The CFTC first began its lawsuit in 2022, claiming that Gemini made “false and misleading statements” about its actions to avoid… Market manipulation In Bitcoin prices. These prices were supposed to serve as a benchmark for cryptocurrency-related derivative agreements.

The complaint states that from July to December 2017, Gemini, directly and through other means, provided the CFTC with deceptive information during its evaluation of a potential self-certification of a Bitcoin futures contract.

The proposed futures contract will be settled according to the spot price Bitcoin price It was generated by an auction held on the Gemini digital asset trading platform, referred to as the Gemini Bitcoin Auction.

The CFTC asserted that many of the statements made by Gemini were misleading or failed to include vital information needed to understand the vulnerability of the proposed contract to manipulation.

Regulatory oversight in the cryptocurrency sector

As stated in complaintGemini employees allegedly knew or should have known that their remarks might deceive the CFTC, which relies on accurate information from market participants to carry out its regulatory duties.

This Bitcoin futures contract was particularly important because it was to be among the initial digital asset futures contracts offered on a designated contract market.

The reliability of the information provided was critical for the CFTC to maintain the financial integrity of transactions and protect market participants from manipulation and other disruptions.

This civil enforcement action involving Gemini was part of a larger effort by the Biden administration to create it Regulatory oversight On the cryptocurrency industry.

The upcoming inauguration of Trump, seen by many cryptocurrency supporters as a potential ally to the sector, raises questions about the future of cryptocurrency regulation in the United States.

In a similar vein, Gemini previously complied with subpoenas requesting laptop computers from two former executives during the… Criminal investigation This eventually ended without any charges being brought.

At the time of writing, the market leading cryptocurrency, Bitcoin, is trading at $102,130 for the first time in over two weeks, up more than 10% on a week-on-week basis.

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