Gemini agrees to pay $5 million to end CFTC lawsuit

PANews reported on January 7 that Gemini Trust Co., the crypto exchange founded by the Winklevoss twins, agreed to pay $5 million to end a lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC). The lawsuit claims that Gemini misled derivatives regulators when it attempted to launch the first U.S.-regulated Bitcoin futures contract. The settlement, disclosed in documents signed by both sides on Monday, avoids a trial that was scheduled to begin on January 21, the day after Trump was inaugurated for a second term as U.S. president. Gemini neither admitted nor denied liability in this case.

In 2022, the CFTC filed a lawsuit against Gemini in Manhattan federal court, alleging that the exchange "made false and misleading statements about how to prevent Bitcoin price manipulation." U.S. District Judge Alvin Hellerstein approved the settlement on Monday last year. In November, Judge Hellerstein rejected Gemini's request, ruling that the jury must determine whether 32 statements made by Gemini executives to regulators were misleading.

Gemini is still facing a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), which accuses the exchange and cryptocurrency lending firm Genesis Global Capital of illegally raising billions of dollars in crypto from investors through the so-called Gemini Earn scheme. assets. In February, Gemini agreed to return at least $1.1 billion to customers as part of a separate settlement with New York regulators.