• Wed. Jun 22nd, 2022

Crypto Exchange Gemini Sued Over 2017 Bitcoin Futures Contract: US CFTC

ByHazel R. Lang

Jun 4, 2022

US CFTC Sues Crypto Exchange Gemini Over 2017 Statements

The US CFTC on Tuesday filed a federal lawsuit in New York accusing Gemini Trust Co of making false and misleading statements regarding a bitcoin futures contract the company was suing in 2017.

The agency argues that Gemini, a crypto exchange run by Cameron and Tyler Winklevoss, violated federal commodity laws and is seeking civil penalties and other remedies.

Gemini officials “knew or reasonably should have known that statements and information given or omitted” by the company were false or misleading as to how a proposed bitcoin futures contract might be susceptible to manipulation, according to the case.

“We have eight years of experience asking for permission, not pardoning, and always doing the right thing. We look forward to proving it definitively in court,” Gemini said in a statement.

Gretchen Lowe, acting director of enforcement at the CFTC, said in a statement that the lawsuit “sends a strong message that the Commission will act to protect the integrity of the market surveillance process.”

The CFTC filing noted that Gemini’s proposed Bitcoin futures contract was particularly significant because it was to be one of the first digital asset futures contracts to be listed on a designated contract market.

In December 2017, a Gemini bitcoin futures contract began trading on the Cboe Futures Exchange under the symbol “XBT”, although it was not immediately clear if the CFTC lawsuit was referring to this particular contract. .

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