Gemini Settles CFTC Case, Avoids Trial
Gemini has agreed to pay $5 million to the U.S. Commodity Futures Trading Commission (CFTC) to settle a dispute stemming from allegations of misleading statements about Bitcoin futures made by the platform.
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According to officials, Gemini representatives allegedly provided false or misleading information during a 2017 meeting about the potential for manipulating Bitcoin futures. After years of investigation, the CFTC reopened the case in 2022.
The settlement does not constitute an admission of wrongdoing but includes a fine and a commitment to refrain from disseminating similar misleading information in the future. This agreement allowed Gemini to avoid a court trial that was scheduled for late January 2025.
In addition, Gemini is currently under investigation by the U.S. Securities and Exchange Commission (SEC) for potential securities law violations. While no formal legal proceedings have begun, negotiations for a pretrial resolution are reportedly underway.
It’s worth noting that the U.S. still lacks specific regulations governing the cryptocurrency industry, leaving room for regulatory overreach. However, with the incoming presidency of Donald Trump, who has expressed support for cryptocurrencies, significant changes in crypto legislation are anticipated.
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