The Commodity Futures Trading Commission (CFTC), has filed a lawsuit against the crypto exchange Gemini. CFTC is claiming that Gemini has made false or misleading statements or omitted facts about a Bitcoin futures contract’s susceptibility to manipulation in 2017.
The U.S. derivatives watchdog, claims that Gemini, led by Cameron and Tyler Winklevoss, broke federal commodity rules, and seeks “disgorgement of ill-gotten gains”, civil fines, and other remedies for violations of the Commodity Exchange Act (CEA).
The issue concerns Bitcoin futures contracts, which began trading on the CBOE Futures Exchange in late 2017 and were based on Gemini’s bitcoin auction price.
During an evaluation of the proposed self-certification of a bitcoin futures contract by a designated contract market (DCM). Gemini allegedly submitted false or misleading statements of material facts, or omitted to state significant information, to the CFTC. This concerns a period ranging from around July 2017 until around December 2017.
The complaint claims that Gemini presented misleading information to the CFTC about facts crucial to the CFTC’s understanding of the Bitcoin futures contract’s proneness to manipulation, as well as “concerning Gemini’s trading platform and the Gemini Bitcoin Auction.”
The lawsuit read, “Such statements and information were relevant to, among other things, assessing the size of, liquidity on, and number of market participants using the Gemini Exchange and the Gemini Bitcoin Auction.”
Also read: CFTC to Increase Enforcement to Curb Crypto Scams
A Gemini spokesperson said, “Gemini has been a pioneer and proponent of thoughtful regulation since day one. 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.”
