Gemini Trust Ends CFTC Dispute With $5 Million Settlement: Details

by

According to recent reports, the Winklevoss brothers’ company, Gemini Trust Co., has chosen to settle a case with the Commodity Futures Trading Commission (CFTC) for an amount of $5 million. The disagreement stemmed from claims that Gemini Trust may have given incorrect and misleading details while trying to introduce the first U.S.-regulated Bitcoin futures contract.

Winklevoss Twins’ Gemini Ends CFTC Dispute With $5M Settlement

Based on Bloomberg’s report, Gemini Trust has agreed to pay $5 million to settle charges made by the Commodity Futures Trading Commission (CFTC). This settlement allows both parties to resolve the matter without either admitting or denying liability. The original lawsuit, filed in a federal court in Manhattan, was set for trial on January 21, 2025.

The lawsuit originated due to accusations that Gemini Trust provided false information to the Commodity Futures Trading Commission (CFTC) in 2017 regarding strategies aimed at preventing manipulation of Bitcoin prices. These strategies were intended as guidelines for derivatives tied to cryptocurrency.

The lawsuit started based on claims that Gemini Trust deceived the CFTC in 2017 about methods meant to stop price manipulation in Bitcoin. These methods were proposed as examples for derivatives linked with cryptocurrency.

Following a recent prediction by former SEC enforcement attorney Marc Fagel, it appears that an agreement has been reached in the Ripple-SEC case. Fagel pointed out that both parties have appealed certain aspects of the case they lost, delaying any penalties. He speculates that with the incoming Trump administration and SEC Chair Paul Atkins, there may be no further pursuit of the appeal, leading to a potential settlement.

CFTC Allegations and Regulatory Efforts

According to the CFTC, Gemini Trust provided misleading information about their proposed Bitcoin futures contract. The regulatory body contends that the company’s measures to prevent price manipulation were inadequate and not truthfully portrayed to the commission.

In the course of my ongoing research, I obtained and analyzed laptops that were subpoenaed from two former executives of Gemini Trust. These devices were part of a broader criminal investigation, which ultimately concluded without any charges being filed. Despite the termination of the criminal case, the parallel civil lawsuit brought forth by the Commodity Futures Trading Commission persisted, eventually leading to a $5 million settlement.

Under President Joe Biden’s leadership, the civil enforcement case was just one of many aimed at strengthening regulatory supervision. Looking ahead to January 20, 2025, when President Donald Trump begins his second term, cryptocurrency supporters are hopeful for a change in direction towards more supportive policies for the industry.

Furthermore, as mentioned in a recent report, Brad Garlinghouse underscored the influence of the “Trump factor” on Ripple, stating that an impressive 75% of Ripple’s open positions are now based in the United States. He pointed out that the company sealed more deals within the US during the final six weeks of 2024 following Trump’s election victory, compared to the previous six months. Garlinghouse also underscored the triumph of Ripple’s RLUSD stablecoin, which has recently overtaken PYUSD and EURC in daily trading volume.

Read More

2025-01-06 23:06