Gemini agrees to pay $5m to settle CFTC charges

Gemini, the crypto exchange founded by the Winklevoss twins, will pay a $5 million fine to settle with the Commodity Futures Trading Commission.

According to Bloomberg, the company agreed to a “proposed consent order” signed by the CFTC on Monday. As part of the settlement, Gemini will pay a $5 million fine for allegedly providing misleading information to the regulator during its efforts to launch the first regulated Bitcoin (BTC) futures contract in the United States.

Gemini agreed to the settlement without admitting or denying the allegations presented by the CFTC, which will have a hearing starting January 21, 2025.

The CFTC filed a lawsuit against Gemini in June 2022; His main complaint was that the exchange, led by the Winklevoss twins, had misled the regulator.

In particular, the agency noted “false or misleading statements of material fact” made by the exchange between July 2017 and December 2017. The regulator’s allegations regarding Gemini’s self-certification of its proposed BTC futures product, as Crypto.news highlighted at the time.

The CFTC complaint stated that Gemini staff “knew or reasonably should have known that such statements were false or misleading.” However, the exchange denied the regulator’s claims, stating that there was no manipulation of the Bitcoin price or harm to investors.

However, in its initial complaint, the CFTC asked the court to forfeit ill-gotten gains, impose civil penalties, and issue an injunction against further violations of the Commodity Exchange Act.

Gemini also had a legal battle with the U.S. Securities and Exchange Commission over its Earn product.

The agreement with the CFTC is one of many companies in the crypto industry reaching agreements with US regulators. Some of the prominent headlines include Binance and Terraform Labs.