NewsletterBreaking: U.S. Regulator Sues Gemini Over Bitcoin Futures Manipulation
The U.S Commodity Futures Trading Commission (CFTC) has sued crypto exchange Gemini . The commission alleged that the company made misleading statements and omissions to the agency. The charges include assertions regarding the Bitcoin (BTC) futures contract pursued by the firm back in 2017.
Gemini submitted misleading statements
The agency claims that from July 2017 to December 2017. Gemini made false statements to the CFTC during ongoing evaluation of the self-certification of a BTC futures contract. The legal contract to buy or sell Bitcoin at the future date was settled by reference to the spot price in the Gemini auction.
Mikko Ohtamaa, Co founder of Trading Protocol, shares some documents depicting the lies told by the Gemini to the CFTC. He mentioned that the accounts were pre funded and some users even traded on credit. The main area under direct evaluation is whether the BTC auction and future contracts were subject to manipulation.
The Gemini in oral and written communication to the Commission told that it was a full reserve exchange. It added that it required all transactions to be fully pre funded. This aspect was presented in a way to be less susceptible to manipulation. This increased traders’ cost of capital. However, it made improper trading conduct more expensive to malicious actors.
Exchange went against CFTC guidelines
The CFTC seeks remedy from Cameron and Tyler Winklevoss’s crypto exchange for generating gains by unfair means. The complaint alleges that the Gemini contempt the civil monetary penalties, and official orders related to registration and trading.
Cameron and Tyler Winklevoss took to Twitter and showed their lack of interest in this claim. However, they also called it “nonsense”. Meanwhile, the complaint mentioned that Gemini personnel knew that such statements were false and misleading beforehand.
Gretchen Lowe, Acting Director of Enforcement said that the commission’s this move will send a strong message to the market. It will imply that CFTC is working to safeguard the integrity of the market.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- December Recovery Ahead? Coinbase Outlines Why Crypto Market May Rebound
- Peter Brandt Hints at Further Downside for Bitcoin After Brief Rebound
- $1.3T BPCE To Roll Out Bitcoin, Ethereum and Solana Trading For Clients
- Why is the LUNC Price Up 70% Despite the Crypto Market’s Decline?
- CoinShares Fires Back at Arthur Hayes, Dismisses Fears Over Tether Solvency
- Ethereum Price Holds $3,000 as Bitmine Scoops Up $199M in ETH; What Next?
- Solana Price Outlook Strengthens as Spot ETFs See $15.68M in Fresh Inflows
- Dogecoin Price Gears Up for a $0.20 Breakout as Inverse H&S Takes Shape
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
