Cryptocurrency exchange Gemini has agreed to pay $5 million to settle a case with the U.S. Commodity Futures Trading Commission over allegedly misleading statements it made more than seven years ago about the ease with which it could be manipulated. the price of a bitcoin futures contract.
The Cameron and Tyler Winklevoss trade settled without admitting or denying liability, according to a letter from CFTC attorney K. Brent Tomer. The trial in the case had been scheduled to begin on January 21, but will no longer continue.
The CFTC sued Gemini in 2022, alleging that it had misled the US regulator during in-person meetings that took place in 2017.
Part of the settlement also included an injunction to prevent Gemini from making false or misleading statements to the commission in the future. These types of injunctions are common in settlements or lawsuits by federal securities and commodities regulators.
Gemini also faces another case with the Securities and Exchange Commission (SEC). A judge ruled in March that the SEC could sue the exchange for violating securities laws.
In the absence of legislation specifically related to the cryptocurrency industry, US regulators have sued several cryptocurrency exchanges, including Coinbase and Binance, for violating securities laws..
Many observers have said that pro-cryptocurrency comments made by President-elect Donald Trump indicate that he will appoint regulators with a less adversarial attitude toward the industry and a reduction in so-called regulation through law enforcement.
