In a significant development for the digital currency industry, Gemini Trust, led by the Winklevoss twins (Tyler and Cameron), has agreed to settle charges worth $5 million, brought forth by the Commodity Futures Trading Commission (CFTC).
Gemini Addresses CFTC Claims Of Deception In Bitcoin Futures Launch
As per a Bloomberg report, the agreement aims to handle accusations that the exchange might have misled the regulatory body during their attempts to introduce the first US-approved Bitcoin futures contract, which they were suspected of deceiving.
The agreement mentioned in the court documents on Monday prevented a trial that was set for January 21, a date which coincided with Donald Trump becoming president of the U.S. for his second term.
In 2022, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Gemini, alleging that they made “deceptive and misleading statements” regarding their efforts to prevent manipulation in Bitcoin’s market price. This price was intended to serve as a reference for derivative contracts associated with cryptocurrency.
According to the grievance, from July through December in the year 2017, Gemini provided misleading data to the Commodity Futures Trading Commission (CFTC) during their evaluation of a potential self-certification for a Bitcoin futures contract. This deception was carried out both directly and indirectly by Gemini.
The proposed futures contract will be resolved based on the current Bitcoin price determined through an auction conducted on the Gemini’s digital asset trading platform, often known as the Gemini Bitcoin Auction.
The Commodity Futures Trading Commission (CFTC) claimed that some statements made by Gemini were either deceptive or lacked essential details about the potential susceptibility of their proposed contract to manipulation.
Regulatory Oversight In Cryptocurrency Sector
According to the accusation, it’s claimed that Gemini employees should have been aware that their statements could potentially mislead the Commodity Futures Trading Commission (CFTC), as the CFTC relies on accurate information from market players to perform its regulatory functions effectively.
The proposed Bitcoin futures contract carried significant importance because it was planned to be one of the first digital asset contracts available for trading on a designated market exchange.
Ensuring the accuracy of the provided data was essential for the Commodity Futures Trading Commission (CFTC) in upholding the honesty of financial exchanges and protecting investors from deception and disruptive activities.
The action taken against Gemini, which fell under civil enforcement, was an element of a broader initiative by the Biden administration aimed at establishing regulatory oversight within the cryptocurrency sector.
The imminent swearing-in ceremony of Trump is causing questions among many crypto enthusiasts about what it might mean for the future of cryptocurrency regulations in the United States, since they view him as a potential supporter of the sector.
Previously, Gemini cooperated by handing over laptops of two former executives in response to subpoenas, as part of a criminal probe which ultimately concluded without any indictments being filed.
Currently, as I’m typing this, Bitcoin – the top cryptocurrency – has reached a price of $102,130 for the first time in over two weeks. On a weekly scale, it has risen by more than 10%.
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2025-01-07 05:41