US CFTC sues crypto exchange Gemini over 2017 statements
The US CFTC filed a federal lawsuit in New York on Tuesday accusing Gemini Trust Company of making false and misleading statements about bitcoin futures contracts being executed by the company in 2017.
The agency argues that Gemini, a crypto exchange led by Cameron and Tyler Winklevoss, has violated federal laws governing commodities, and is seeking civil fines and other measures.
According to the filing, Gemini executives “knew or reasonably knew that statements and information made or omitted by the company were false or misleading as to how a proposed bitcoin futures contract could be susceptible to manipulation.”
“We have an eight-year track-record of seeking permission, not pardon, and always doing the right thing. We look forward to conclusively proving this in court,” Gemini said in a statement.
“The lawsuit sends a strong message that the commission will act to protect the integrity of the market oversight process,” Gretchen Lowe, acting director of enforcement at the CFTC, said in a statement.
The CFTC filing noted that Gemini’s proposed bitcoin futures contract was particularly significant because it was one of the first digital asset futures contracts listed on a designated contract market.
In December 2017, the Gemini bitcoin futures contract began trading on the Cboe Futures Exchange under the ticker symbol “XBT”, although it was not immediately clear whether the CFTC’s lawsuit specifically referred to this contract.