Gemini Resolves CFTC Lawsuit With $5M Settlement Over Bitcoin Futures Misstatements

Gemini Trust has agreed to pay $5 million to resolve allegations of providing false information to the Commodity Futures Trading Commission.

The misleading claims were made during the process in which the agency was evaluating a proposed Bitcoin futures contract, specifically relating to whether the proposed contract was susceptible to market manipulation.

The CFTC argued that, "Gemini personnel knew or reasonably should have known that such statements were false or misleading", implying a deliberate or careless oversight of the truth in their communications.

The trial was originally scheduled to begin on Jan. 21, with a pre-trial conference set for Jan. 13 in the U.S. District Court for the Southern District of New York.

Also Read: Bitcoin Jumps Past $102,000: Experts See ‘Classic Correction,’ Eye $109,000 High

However, the settlement preempts further courtroom proceedings.

Gemini denied the allegations throughout the case, asserting that the proposed bitcoin futures contract functioned as designed and did not harm investors.

“This contract worked as intended—the reference price was reliable, no investors were harmed, no price manipulation occurred, and the CFTC has not alleged any concerns with the contract itself,” the company stated in August 2022.

The settlement concludes the prolonged legal dispute, highlighting the challenges crypto firms face in navigating regulatory frameworks while maintaining compliance with government agencies.

Read Next:

• MicroStrategy Extends Bitcoin Buying Streak, Metaplanet Aims For 10,000 BTC War Chest

Image: Shutterstock