Catenaa, Tuesday, January 7, 2025 – Cryptocurrency platform Gemini Trust Company, led by Cameron and Tyler Winklevoss, has agreed to pay $5 million to settle allegations of making misleading statements to the US Commodity Futures Trading Commission (CFTC).
The settlement was detailed in a proposed consent order signed Monday, with Gemini neither admitting nor denying the claims.
The CFTC accused Gemini of providing false or misleading information during its evaluation of a bitcoin futures contract in 2017. According to the agency, the inaccuracies related to whether the proposed contract would be vulnerable to manipulation.
The lawsuit was filed in June 2022, with the CFTC asserting that Gemini personnel were aware, or should have been aware, of the misleading nature of their statements.
A trial was previously scheduled to begin on January 21, following a pre-trial conference on January 13, in the US District Court for the Southern District of New York.
This settlement resolves the legal dispute without proceeding to trial.
Gemini has consistently denied the allegations, asserting in its 2022 response that the bitcoin futures contract in question functioned as intended and caused no harm to investors. The company argued that the CFTC’s claims were unjustified.
The settlement highlights ongoing regulatory scrutiny in the cryptocurrency sector, particularly as authorities evaluate potential risks and safeguards in emerging financial products.
