Gemini founder Winklevoss brothers reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC) on 1/6, agreeing to pay $5 million to end a year-long lawsuit, with both parties ultimately resolving the dispute before the hearing on 1/21.
CFTC accuses Gemini of misleading regulators
In 2022, the CFTC filed a lawsuit in federal court, accusing Gemini of making 'false and misleading statements' to regulators when providing price reference data for Bitcoin futures products in 2017. The CFTC stated that Gemini's actions undermined market transparency and fairness, thereby affecting the functioning of the derivatives market. Both parties were originally scheduled for a direct confrontation in court on 1/21, but ultimately settled before the hearing.
Gemini agrees to pay $5 million
According to Bloomberg, Gemini agreed to pay $5 million as a settlement and does not admit or deny liability in the case. The settlement has been approved by U.S. District Judge Alvin Hellerstein, who previously denied Gemini's motion for a jury to determine whether 32 statements made by Gemini executives to regulators were misleading. Gemini and the CFTC have not yet responded to inquiries regarding the settlement agreement.
Winklevoss Brothers' Position and Donation Controversy
This case is one of the enforcement actions taken by the Biden administration to strengthen cryptocurrency regulation. As the U.S. President-elect Trump is set to be sworn in for a second term on 1/20, many crypto supporters hope the new administration will introduce more friendly regulatory policies. According to previous reports from Chain News, the Winklevoss brothers had donated a total of $2 million in Bitcoin as political contributions to show strong support for Trump.
Winklevoss brothers photographed with Trump
(Gemini founder Winklevoss brothers donated $2 million in Bitcoin to support Trump's presidential campaign)
Gemini still faces multiple lawsuits
Although the case between Gemini and the CFTC has reached a conclusion, there are still other lawsuits to address from regulatory agencies:
Lawsuit with the SEC: The U.S. Securities and Exchange Commission (SEC) accused Gemini of attempting to illegally raise billions of dollars in crypto assets from investors through the Gemini Earn program in collaboration with Genesis Global Capital.
Settlement with New York regulators: Gemini agreed to repay at least $1.1 billion to customers this February to resolve disputes related to New York regulators.
In addition, the CFTC's criminal investigation previously involved laptops of two former senior executives of Gemini, but the case ultimately concluded in 2018 without any charges being brought.
(Coinbase and Gemini oppose CFTC's proposal to ban prediction markets: overreach and unclear definitions)
This article discusses Gemini's settlement with the CFTC! The Winklevoss brothers agreed to pay $5 million to end the lawsuit with the CFTC, first appearing in Chain News ABMedia.