Gemini co-founders Tyler and Cameron Winklevoss agreed to pay a $5 million fine to resolve the Commodity Futures Trading Commission’s (CFTC) allegations that it misled regulators in its attempt to launch the first U.S. regulated Bitcoin (BTC) futures contract.
If Bloomberg News reports thisThe settlement prevents a trial that would start on January 21, the day after the second presidential inauguration of newly-elected President Donald Trump.
The CFTC’s 2022 lawsuit accused Gemini of making “false and misleading statements” regarding safeguards against price manipulation in the Bitcoin markets.
These guarantees were central to the CFTC’s review of Gemini’s proposed Bitcoin futures contracts, which would have pegged a reference price derived from the exchange’s price data.
Under the terms of the settlement, Gemini neither admitted nor denied any wrongdoing.
The CFTC’s lawsuit also referenced subpoenaed laptops belonging to two former Gemini executives in connection with a related criminal investigation, which ultimately resulted in no charges.
Gemini supplied these devices amid heightened scrutiny in late 2017 and early 2018, as the exchange sought to position itself as a regulatory pioneer in the crypto industry.
Change in regulations
In a separate regulatory development, the exchange took place recently announced his plans to exit the Canadian market on September 30, 2024.
While the exchange did not provide details on what drove the decision, the move came as other major crypto firms such as Bybit, Binance and Paxos exited the country, citing regulatory challenges.
Meanwhile, the company is run by the Winklevoss twins secured a license in Singapore to provide cross-border money transfer and digital payment token services.
Unlike Canada’s crypto exodus, Singapore is embracing several global crypto companies, such as OKX, Upbit, Ripple and Coinbase.
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Gino Matos
Gino Matos is a law graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise focuses primarily on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).