Crypto exchange Gemini has agreed to pay the US Commodity Futures Trading Commission (CFTC) a $5 million civil penalty to end the regulator’s lawsuit.
The CFTC filed a complaint against Gemini in 2022, alleging that the exchange made false and incomplete statements to the agency in connection with the 2017 evaluation period of a proposed Bitcoin (BTC) futures contract product.
Gemini, which is run by twin brothers Cameron and Tyler Winklevoss, is alleged to have made false or misleading statements about whether the proposed Bitcoin futures contract would be susceptible to manipulation.
The trial was scheduled to begin on January 21, the day after President-elect Donald Trump’s inauguration day. Each of the Winklevoss brothers donated $1 million worth of BTC to Trump’s campaign in June.
Tyler Winklevoss also argued that the Biden-Harris administration had unleashed “four years of terror” on the crypto industry, with Cameron estimating that the outgoing administration’s policies cost the sector $500 million in legal fees.
District Judge Alvin K. Hellerstein ordered Gemini to pay the $5 million within 10 days of the consent order, which he signed Monday, according to the court docket.
The exchange is also “permanently restricted, enjoined and prohibited from making false or misleading statements or failing to report material facts to the Commission.”
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