The Commodity Futures Trading Commission (CFTC) has announced that Gemini Trust Company will pay a $5 million penalty to settle claims of providing false information to regulators. The settlement was filed in the U.S. District Court for the Southern District of New York on January 6, 2025.
According to a 2022 CFTC press release, the agency filed a lawsuit against Gemini Trust Company, LC, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss. The lawsuit alleges that the exchange made false or misleading statements to the CFTC during its 2017 bid to offer Bitcoin futures contracts.
Reuters reports that Gemini Trust Company agreed to pay a $5 million civil penalty to resolve allegations from the CFTC that it provided false or misleading information in 2017 regarding a bitcoin futures contract. The settlement, finalized in federal court in New York, includes a permanent injunction and allows Gemini to avoid a trial scheduled for January 21, 2025, without admitting or denying the CFTC's findings.
CFTC Chair Rostin Behnam is set to step down on January 20, 2025, as the new administration takes office. Behnam has led the CFTC since 2021 and served as a commissioner since 2017. He emphasized the need for stricter regulatory oversight of the cryptocurrency sector, citing gaps in U.S. regulation. Under his leadership, according to Reuters, the CFTC pursued significant crypto-related enforcement actions and maintained its stance on regulating digital commodity assets.
Decrypt reported that in October 2021, the CFTC fined Tether $41 million for making misleading statements about its USDT stablecoin's backing. It was alleged that Tether falsely claimed USDT was fully backed by U.S. dollars.
The CFTC regulates U.S. derivatives markets with a focus on market integrity, resilience, and compliance with applicable laws. It is led by a chairman and commissioners appointed by the president and confirmed by the Senate. The agency is organized into divisions responsible for enforcement, market oversight, data management, and customer education. Its operations include monitoring derivatives platforms, addressing violations of commodity laws, and providing legal and economic support.
