CFTC Sues Gemini, the Winklevoss Twins’ Cryptocurrency Exchange

The US Commodity Futures Trading Commission (CFTC) has filed suit against the cryptocurrency exchange Gemini. The suit alleges that the company “misled the regulator by answering questions about a Bitcoin-price-linked futures contract on Gemini’s platform,” Bloomberg reports.

According to the agency, the suit was filed in federal court in Manhattan. The document states that between July and December 2017, during meetings with CFTC staff, the company’s representatives “made false and misleading statements” regarding the platform’s activities and the Gemini Bitcoin Auction product.

“This Bitcoin-based futures contract was of particular significance because it was set to become one of the first futures on digital assets to be listed on a market created specifically by the contract, while investors showed strong interest in accessing Bitcoin through derivatives markets,” the CFTC said in the complaint.

The Gemini Bitcoin Auction price-determination mechanism использовался in settlement futures on Bitcoin at the Chicago Board Options Exchange (CBOE) when the product launched in 2017.

In 2019, amid a bear market and competition with CME, the platform removed this instrument from listing.

Earlier in May 2022, CFTC Commissioner Caroline Pham compared cryptocurrencies to lottery tickets.

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