Gemini has reached a settlement with the Commodity Futures Trading Commission (CFTC), agreeing to pay a $5 million fine. As part of the agreement, the company did not admit or deny any wrongdoing. The settlement resolves allegations that Gemini, led by co-founders Tyler and Cameron Winklevoss, misled regulators during its attempt to launch the first US-regulated Bitcoin (BTC) futures contract.
According to Bloomberg News, the settlement avoids a trial that was scheduled to begin on January 21, a day after President-elect Donald Trump’s second presidential inauguration.
The CFTC filed its lawsuit in 2022, alleging that Gemini provided “false and misleading statements” regarding safeguards against price manipulation in Bitcoin markets. These assurances were a critical factor in the CFTC’s review of Gemini’s proposed Bitcoin futures contracts, which were to be tied to a reference rate derived from the exchange’s pricing data.
The settlement also followed the CFTC’s reference to subpoenaed laptops from two former Gemini executives during a related criminal investigation. The laptops were provided by Gemini during heightened regulatory scrutiny in late 2017 and early 2018 as the company aimed to establish itself as a regulatory leader in the crypto industry. The investigation did not result in any charges.
Regulatory Developments
Separately, Gemini recently announced its decision to exit the Canadian market, effective September 30, 2024. While the exchange did not specify the reasons behind the move, it comes amidst a wave of other major crypto firms, including Bybit, Binance, and Paxos, withdrawing from Canada due to regulatory challenges.
At the same time, Gemini has made progress in other regions. The company secured a license in Singapore to offer cross-border money transfer and digital payment token services. Unlike Canada, Singapore has become a hub for global crypto firms such as OKX, Upbit, Ripple, and Coinbase, reflecting its favorable regulatory environment.
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