Things are getting worse for the popular cryptocurrency exchange led by the Winklevoss twins
According to a Bloomberg report, the Commodity Futures Trading Commission (CFTC) has taken Gemini Cryptocurrency to court, alleging that the Winklevoss-led cryptocurrency exchange misled the regulator about the nature of its bitcoin futures contracts. Is.
Gemini allegedly made false statements during meetings with CFTC employees regarding its operations.
Chicago-based Cboe Global Markets announced the launch of bitcoin futures in early December 2017. At the time, the price of the largest cryptocurrency was at the peak of the previous cycle.
The cash settlement contracts were based on Gemini’s auction price for bitcoin.The lawsuit, which was filed in Manhattan federal court earlier today, does not specify whether the effort was connected to that historic partnership.
In March 2019, Cboe closed its bitcoin futures, claiming it needed to reevaluate how it would approach the cryptocurrency space. The exchange’s exit was chalked up to a lack of demand for the cryptocurrency.
Juthika Chow, Head of Over-the-Counter Options Trading at the Kraken Exchange believe that That Cboe did not delist bitcoin futures simply because of market demand.
Earlier today, Gemini also announced that it has laid off 10% of its employees due to adverse market conditions.
It is not clear whether the firing spree is related to the CFTC lawsuit.