Gemini exchange is being sued by the CFTC for making false representations in 2017.
The Commodity Futures Trading Commission (CFTC) is suing Gemini, a crypto exchange based in New York, for “making false or misleading claims” or omitting data in interactions with the agency. The action was brought to a federal court in New York for violation of the Commodity Exchange Act (CEA). The CFTC’s claims refer to negotiations with Gemini about self-certification of a Bitcoin futures contract that took place between July and December 2017 – almost five years ago. If approved, it would have been the first digital asset futures contract to be listed in the United States. Gretchen Lowe, the CFTC’s Acting Director of Enforcement, said in a statement that Making false or misleading claims to the CFTC in connection with a futures product certification jeopardizes the CFTC’s efforts to protect market participants, deter and avoid price manipulation, and promote responsible innovation and fair competition. This enforcement action sends a clear message that the Commission will take measures to protect the market supervision process’ integrity.
According to the lawsuit, Gemini submitted incorrect information on factors that were important for the CFTC to assess the Bitcoin futures contract’s proneness to manipulation. In other words, the CFTC believes that Gemini misled or omitted information about the ease with which the Bitcoin futures contract may be manipulated. Gemini personnel knew or should have known that their claims were deceptive or false, according to the CFTC statement. The CFTC is seeking unlawful earnings from Gemini, which is owned by Cameron and Tyler Winklevoss, as well as a restriction on its registration and trading, as well as fines.
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