The United States Commodity Futures Trading Commission (CFTC) filed a lawsuit against Gemini Trust Company in the US Southern District Court of New York on Thursday. The CFTC claimed in the civil suit that Gemini made false or misleading statements to the CFTC in in-person meetings and documents in 2017, violating the Commodity Exchange Act and other regulations.
The agency was evaluating a possible self-certification of a bitcoin (BTC) futures contract based on a spot bitcoin price determined by an auction held on Gemini’s digital asset trading platform.
The CFTC was considering whether the proposed bitcoin futures contract would have the potential for manipulation. The proposed bitcoin futures contract will be one of the first digital asset futures contracts listed.
Gemini is a cryptocurrency trading platform founded by brothers Cameron and Tyler Winklevoss. It announced staff cuts on Thursday and is preparing to lay off 10% of its workforce due to the downturn in the crypto market.
This story is still in development.