Just In: Gemini Files Complaint Against CFTC, Alleges “Lawfare” In 2022 Lawsuit
Highlights
- Gemini accused the CFTC Enforcement Division of weaponizing the Commodity Exchange Act (CEA) against them.
- The exchange has accused the Division of relying on the testimony of a discredited former employee.
- The crypto exchange also accused the division of using the law as a weapon the lawsuit.
- Gemini agreed to a $5 million settlement in January but claimed it had no other choice.
Gemini has filed a complaint against the Enforcement Division of the Commodity Futures Trading Commission (CFTC). The crypto exchange alleges wrongdoing by the Commission following the 2022 lawsuit, which led to a $5 million settlement agreement earlier this year.
Gemini Accuses CFTC Enforcement Division Of Wrongdoing
In a letter addressed to the Inspector General of the CFTC, the crypto exchange raised a number of concerns and complaints about the conduct of the Division of Enforcement (DOE) lawyers who represented the CFTC in its lawsuit against them.
Gemini accused the DOE staff of “selectively and unfairly” weaponizing the Commodity Exchange Act (CEA) to bring dubious false statements and charges against the exchange.
Furthermore, the Winklevoss-founded firm alleged that the Division compounded this wrongdoing by taking a series of legal positions that are contrary to basic principles of due process and good governance.
Gemini claimed that the agency relied on the testimony from a discredited former employee to build its case. The exchange declared that these actions led to a substantial prejudice against them.
The CFTC sued Gemini in 2022 over claims of misleading statements for a Bitcoin futures contract. However, both sides eventually reached a $5 settlement earlier this year, a move that avoided a trial that would have begun on January 21.
In the complaint, the exchange stated that it did not settle because it did anything wrong, but did so because there was “no other choice.” This complaint also comes just a week after the nominee for the CFTC Chair role, Brian Quintenz, stated that the Commission should also oversee the spot crypto markets.
In an X post, Gemini’s co-founder, Tyler Winklevoss, also commented on the complaint. He stated that for seven years, the lawyers in the CFTC Enforcement Division misused their offices and millions of taxpayer dollars to engage in “trophy-hunting lawfare” against his company.
He further remarked that these lawyers investigated and sued the exchange, which was an innocent party, to serve their personal interests despite knowing that the company was the victim of a “multi-million dollar rebate fraud.”
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