Gemini agrees to pay $5 million to settle CFTC lawsuit over misleading Bitcoin futures claims, amidst ongoing legal battles.
Gemini Trust Co., a cryptocurrency exchange founded by the Winklevoss twins, has agreed to pay $5 million to settle a lawsuit with the Commodity Futures Trading Commission (CFTC). According to the lawsuit, Gemini attempted to launch the first US-regulated Bitcoin futures contract while misleading regulators, according to Bloomberg.
On Monday, the proposed settlement was revealed as one that will prevent a January 21 trial. The timing of this settlement avoids the need for a trial just as President Donald Trump begins his second term in office.
Gemini, which was founded by Cameron and Tyler Winklevoss, settled without admitting or denying the relevant CFTC allegations. The case began in 2022 when CFTC sued Gemini in Manhattan federal court. The exchange made false statements about how it would prevent Bitcoin Price manipulation, the regulator claimed. They were intended for use as a reference for derivatives of Bitcoin.
US District Judge Alvin Hellerstein must approve the settlement. Gemini’s request to dismiss the case was rejected by the judge, in November. He said a jury would decide whether 32 statements made by Gemini executives were misleading. The CFTC and Gemini did not immediately respond to requests for comments on the settlement.
The Biden administration has been trying to regulate cryptocurrencies and this lawsuit is a part of it. Crypto advocates hope Trump will herald a new era of better rules for the industry. Trump supporters the Winklevoss brothers donated $844,600 each to his 2024 campaign.
Apart from this case, Gemini has faced other legal battles. Gemini struck a settlement with IRA Financial Trust in 2024 July regarding a theft of funds due to security issues. A hacker exploited the IRA’s master key on Gemini and siphoned off life savings from senior persons.
The SEC also has a lawsuit up against Gemini. Gemini and Genesis Global Capital illegally raised billions through the Gemini Earn program, the SEC says. Gemini also agreed as part of a separate settlement with New York regulators to return $1.1 billion to customers.
Even with these legal issues, Gemini is still a top crypto exchange. But these battles in court demonstrate how difficult it is for the cryptocurrency industry to handle complicated regulations.
The post Gemini Settles CFTC Lawsuit for $5 Million appeared first on Live .
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Author: NixCoin
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