Gemini co-founders Tyler and Cameron Winklevoss agreed to pay a $5 million fine to resolve the Commodity Futures Trading Commission (CFTC) allegations that it misled regulators during its bid to launch the first US-regulated Bitcoin (BTC) futures contract.
As Bloomberg News reported, the settlement averts a trial that was set to begin on Jan. 21, the day after President-elect Donald Trump’s second presidential inauguration.
The CFTC’s 2022 lawsuit accused Gemini of providing “false and misleading statements” regarding safeguards against price manipulation in Bitcoin markets.
These assurances were central to the CFTC’s evaluation of Gemini’s proposed Bitcoin futures contracts, which would have tied a reference rate derived from the exchange’s pricing data.
Under the settlement terms, Gemini did not admit or deny any wrongdoing.
The CFTC’s lawsuit also referenced subpoenaed laptops from two former Gemini executives in connection with a related criminal investigation, which ultimately did not lead to charges.
Gemini provided these devices during heightened scrutiny in late 2017 and early 2018 as the exchange sought to position itself as a regulatory pioneer in the crypto industry.
Regulatory shift
In a separate regulatory development, the exchange recently announced its plans to exit the Canadian market on Sept. 30, 2024.
Although the exchange did not provide details on what drove the decision, the move came as other major crypto firms, such as Bybit, Binance, and Paxos, were leaving the country, citing regulatory challenges.
Meanwhile, the company led by the Winklevoss twins secured a license in Singapore to provide cross-border money transfer and digital payment token services.
Contrary to the crypto exodus in Canada, Singapore is embracing various global crypto firms, such as OKX, Upbit, Ripple, and Coinbase.
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Gino Matos
Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
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