In a joint court filing announced on Monday, January 6, Gemini Trust Co agreed to pay $5 million to the Commodity Futures Trading Commission (CFTC).
The company, led by the Winklevoss twins, agreed to the settlement to end a lawsuit alleging that it misled the regulator during the launch of the first U.S. Bitcoin futures contract.
This penalty came just in time to avoid the pre-trial conference scheduled for January 13 and the trial set for January 21. However, Gemini Trust Co. neither admitted nor denied the agency’s claims.”
Order moving CFTC v. Gemini trial start date. Source: PACER.
The CFTC sued Gemini in June 2022 for ‘making misleading statements and omissions of material facts.’ Amongst other allegations, the commission’s lawsuit claimed that in 2017, Gemini misled on facts around the proposed Bitcoin Futures Contract being susceptible to manipulation.
The CFTC has had a huge role in regulating crypto firms. Notable in recent years are Uniswap, FTX, Celsius, and Binance., all charged with alleged violations of US commodities laws. In 2024, the commission reported a record $17.1 billion from crypto enforcement actions, primarily from disgorgement and restitution.
Reports about a change of the CFTC board by President-elect Donald Trump’s transition team also circulated in December 2024. This was after the commission was charged with regulation by enforcement and urged to be more pro-crypto.
The CFTC is second to only the Securities and Exchange Commission (SEC) in regulating markets in the United States of America.
READ MORE: Coinbase Team Releases Redacted FDIC Letters
