Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has agreed to pay a $5 million fine to resolve allegations by the Commodity Futures Trading Commission (CFTC) that it provided misleading information during its attempt to launch the first U.S.-regulated Bitcoin futures contract.
The settlement, announced today in a joint court filing, avoids a trial that was scheduled to begin on Jan. 21, 2025, the day after Donald Trump's second presidential inauguration. As part of the agreement, Gemini did not admit or deny liability.
In a 2022 lawsuit filed by the CFTC in Manhattan federal court, Gemini was accused of making “false and misleading statements” regarding measures intended to prevent manipulation of Bitcoin prices, which would be used as references for Bitcoin derivatives.
The lawsuit is one of many efforts by the Biden administration to regulate the cryptocurrency industry, though Trump’s return to office is seen by many in the crypto community as a potential turning point toward more industry-friendly policies.
In connection with the case, Gemini turned over subpoenaed laptops belonging to two former executives in late 2017 or early 2018. A related criminal investigation was closed without charges.
*This is not investment advice.
