US CFTC Sues Gemini Crypto Exchange Over a Bitcoin Futures Product
Lawsuit Concerning Bitcoin Futures Contract From 2017
According to an official press release from the CFTC, in 2017, Gemini’s founders, Cameron and Tyler Winklevoss made false or misleading statements to the watchdog during the exchange’s application for bitcoin futures contracts. In other words, the CFTC claims that Gemini lied or omitted facts about how easily the Bitcoin futures contract could fall prey to price manipulation.
“Making false or misleading statements to the CFTC in connection with a futures product certification undermines the CFTC’s work to ensure the financial integrity of all transactions subject to the CEA, protect market participants, deter and prevent price manipulation, and promote responsible innovation and fair competition,” said Acting Director of Enforcement Gretchen Lowe.
The CFTC said it would seek disgorgement of ill-gotten gains, monetary penalties, and injunctions relating to registration and trading and against further violations of the Commodity Exchange Act. Furthermore, the regulatory agency added that Gemini employees knew or should have known that their statements were misleading or false.
Reacting to the lawsuit, Gemini released a statement saying:
"We have an eight-year track record of asking for permission, not forgiveness, and always doing the right thing. We look forward to definitively proving this in court."