Gemini Settles with CFTC for $5 Million Over Misleading Bitcoin Futures Statements

Crypto exchange Gemini has agreed to pay $5 million to settle a case with the U.S. Commodity Futures Trading Commission (CFTC) over allegedly misleading statements made more than seven years ago regarding the ease with which the price of a bitcoin futures contract could be manipulated.

Cameron and Tyler Winklevoss’ exchange settled the case without admitting or denying liability, according to a letter from the CFTC’s attorney, K. Brent Tomer. A trial, which was scheduled to begin on January 21, will no longer take place.

The CFTC filed a lawsuit against Gemini in 2022, claiming the exchange misled the U.S. regulator during in-person meetings in 2017.

As part of the settlement, an injunction has been imposed, barring Gemini from making false or misleading statements to the commission in the future. This type of injunction is common in federal securities and commodities regulatory settlements or lawsuits.

Crypto exchange Gemini is also dealing with another case from the Securities and Exchange Commission (SEC). A judge ruled in March that the SEC could pursue a lawsuit against the exchange for allegedly violating securities laws.

With no specific legislation on crypto, U.S. regulators have sued various crypto exchanges, including Coinbase and Binance, for securities law violations. Many observers believe President-elect Donald Trump’s pro-crypto stance could lead to less confrontational regulation of the industry and a shift away from “regulation by enforcement.”