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Gemini Settles $5 Million Case With CFTC Over Misleading Statements

Posted on January 27th, 2025 at 11:06 AM
Gemini Settles $5 Million Case With CFTC Over Misleading Statements

From the desk of Jim Eccleston at Eccleston Law

Crypto exchange Gemini has agreed to pay $5 million to settle allegations by the U.S. Commodity Futures Trading Commission (CFTC) that it made misleading statements about bitcoin futures contracts in 2017. According to a letter from CFTC attorney K. Brent Tomer, Gemini resolved the case without admitting or denying liability.

The case, filed by the CFTC in 2022, accused Gemini of providing false information during in-person meetings in 2017 regarding the potential for manipulating the price of a bitcoin futures contract. According to Bloomberg Law, a trial had been scheduled to begin on January 21 but will no longer proceed following the settlement.

As part of the settlement, Gemini agreed to an injunction prohibiting the company from making false or misleading statements to the commission in the future.

Such injunctions are commonly included in regulatory settlements involving federal securities and commodities authorities.

Bloomberg Law reports that the settlement is not Gemini's only regulatory challenge. The company also faces a lawsuit from the Securities and Exchange Commission (SEC), which alleges violations of securities laws. In March, a judge ruled that the SEC could proceed with its case against the exchange.

Gemini's legal battles are part of a broader wave of enforcement actions against crypto exchanges, including Coinbase and Binance, as U.S. regulators increasingly crack down on the industry in the absence of specific legislation.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

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