Gemini Settles $5M CFTC Lawsuit Over Bitcoin Futures Approval

Gemini, the cryptocurrency exchange founded by the Winklevoss twins, is once again making headlines. The platform has agreed to pay a $5 million fine to settle a lawsuit filed by the Commodity Futures Trading Commission (CFTC). The regulator accused Gemini of providing false information to secure approval for the first U.S.-regulated Bitcoin futures contract.

$5 Million Fine to End Legal Dispute

On January 6, a filing in the U.S. District Court for the Southern District of New York revealed that Gemini and the CFTC had signed a proposed consent order. If approved by the court, Gemini will pay a $5 million civil penalty to close the case.

The settlement allows Gemini to avoid a civil trial, which was set for January 21. The CFTC had planned to argue that the exchange made “false and misleading” statements during its application process. Interestingly, this date coincides with Donald Trump’s scheduled inauguration for his second term as U.S. president.

Under the terms of the settlement, Gemini neither admits nor denies the allegations but agrees to the monetary penalty.

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Gemini Regulatory Challenges

This case is one of several regulatory hurdles Gemini has faced. The exchange continues to battle a lawsuit from the U.S. Securities and Exchange Commission (SEC), which claims Gemini and Genesis Global Capital illegally raised billions of dollars through the Gemini Earn program. 

Earlier, in February, Gemini reached a separate settlement with New York regulators. As part of that agreement, the exchange committed to returning at least $1.1 billion to customers impacted by the Earn program.

The $5 million fine may close this case, but it’s clear that Gemini’s regulatory challenges are far from over. When will it end? We’ll have to wait and see.