Gemini to Pay $5M in Settlement with CFTC

The Commodity Futures Trading Commission (CFTC) has put forward a proposed agreement with Gemini Trust Company, which could prevent a court case from happening.

According to a report by Bloomberg, in a deal filed on January 6, 2025, Gemini was required to pay a fine of $5 million. As part of this agreement, Gemini also committed not to make any false or misleading statements to the Commodity Futures Trading Commission (CFTC) again.

The issue arose in June 2022 when the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Gemini, claiming they had deceived the agency regarding their intention to offer Bitcoin futures contracts back in 2017. According to the CFTC, Gemini failed to disclose crucial details about the unique fee structures they had with specific market participants.

As per the Commodity Futures Trading Commission (CFTC), these deals offered superior conditions compared to those available to the public at large, with the intention of boosting trades on the Gemini exchange. Yet, these agreements were kept confidential, not only from the general public but also from the CFTC.

Prior to a trial set for January 21, 2025, which was previously postponed in December 2024 and deemed non-deferrable by a federal judge, there is a proposed settlement that has yet to receive comment from Gemini. If this settlement gets court approval, it could prevent the involved parties from engaging in an extended legal battle.

The case at hand is a continuation of the CFTCommodity Futures Trading Commission’s efforts to govern the cryptocurrency market. Over the last year, the CFTC has brought several legal actions against crypto businesses, ensuring U.S. commodity laws are upheld. In their latest report, the CFTC announced they had accumulated over $17 billion in penalties and restitution payments, with a portion coming from cryptocurrency companies, during the 2024 fiscal year.

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2025-01-07 01:08