Key Takeaways:
- $5M Penalty: Gemini faces a $5 million civil penalty under a proposed CFTC consent order, resolving allegations of misleading information during its 2017 Bitcoin futures application.
- Avoiding Trial: The settlement, if approved, will prevent a civil trial set for January 21 and commits Gemini to improved compliance with CFTC regulations.
- Allegations Summary: CFTC accused Gemini of concealing favorable fee arrangements to promote trading, which the company admitted it “reasonably should have known” were misleading.
Gemini Trust Company may settle a lawsuit with the U.S. Commodity Futures Trading Commission (CFTC) by agreeing to a proposed $5 million penalty.
The proposed consent order, detailed in a January 6 court filing, requires approval from a federal judge.
Crypto exchange Gemini, founded by Tyler and Cameron Winklevoss, has agreed to pay a $5 million civil penalty to end a CFTC lawsuit. https://t.co/fEFvWqbMX6
— Decrypt (@DecryptMedia) January 6, 2025
If accepted, it would resolve allegations that Gemini provided false or misleading information during its 2017 application to offer Bitcoin futures contracts.
Specifically, the CFTC alleged that Gemini concealed favorable fee arrangements with select market participants, such as market makers, to boost trading activity in its auction process.
Gemini settles with the CFTC for $5M in a case about bitcoin futures approval ⚖️💸
— Bitcoin.com News (@BTCTN) January 6, 2025
– Settlement avoids trial; no admission of wrongdoing.
– CFTC accused Gemini of misleading regulators in 2017-2018.
– Case highlights growing regulatory focus on crypto exchanges.
Under the settlement, Gemini would admit it “reasonably should have known” the information provided was inaccurate and pledge to avoid misleading the CFTC in the future.
This agreement could prevent a civil trial originally scheduled for January 21, which had been delayed once before with no further extensions permitted.
If approved, the settlement would finalize all claims against Gemini and eliminate the need for trial proceedings.
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