- The New York-based Winklevoss-owned cryptocurrency exchange Gemini is being sued by the CFTC.
- The lawsuit alleges that Gemini misled regulators in negotiations related to the launch of bitcoin futures contracts.
- Gemini is quick to “conclusively prove” the allegations.
The Commodity Futures Trading Commission (CFTC) is suing cryptocurrency exchange Gemini Trust Company LLC for “making false or misleading statements of material facts,” according to a CFTC press release.
In 2017, the Chicago Board Options Exchange (CBOE) announced a partnership with Gemini in an effort to distribute bitcoin derivatives such as futures contracts, pending regulatory approval.
“This will bring more participants to the market who will now be able to express a view on bitcoin,” Gemini president Cameron Winklevoss reportedly said in a phone interview at the time.
The complaint, filed by the CFTC, claimed that during the period July 2017 – December 2017, the Winklevoss-owned exchange “directly and through others” alleged false or misleading material facts to the CFTC during a review. made claims in which the regulator was evaluating. Company’s eligibility for “Self-Certification”.
“Gemini has been a pioneer and proponent of discreet regulation from day one. We have an eight-year track record of seeking permission, not apologizing and always doing the right thing. We look forward to conclusively proving this in court.” ,” said a Gemini spokesperson on the matter.
The CFTC claimed that Gemini has provided data relevant to the approval of bitcoin futures contracts, including “certain statements and information disclosed or omitted by Gemini”, concerning whether “facts relevant to understanding whether The proposed bitcoin futures contract would easily be susceptible to manipulation.”
The regulator alleges that this particular futures contract was important to the regulator in determining future course of action within the market as it would have been one of the first bitcoin futures contracts listed on a specified contract market.
“The CFTC seeks an injunction against wrongful earned profits, civil monetary penalties, injunctions relating to registration and trading, and further violations of the Commodity Exchange Act (CEA),” the CFTC said in the press release.