Gemini Trust Company reaches $5 million settlement with CFTC over Bitcoin futures case, choosing to resolve litigation before the upcoming Trump administration.
Gemini Trust Company, a New York-based cryptocurrency exchange founded in 2014 by the Winklevoss brothers, has agreed to pay a penalty of $5 million to the United States Commodity Futures Trading Commission (CFTC) to end a long-standing litigation. The Winklevoss brothers agreed to pay the fine in a joint court hearing on Monday to avoid a trial set to coincide with the inauguration of pro-crypto US President-elect Donald Trump.
Gemini settled the case with the US CFTC without admitting or denying any liability in the case. In June 2022, the US CFTC filed a complaint in the US District Court for the Southern District of New York against Gemini for issuing misleading statements of material facts regarding the Bitcoin BTC $115 541 24h volatility: 3.3% Market cap: $2.30 T Vol. 24h: $60.28 B futures product.
According to the US CFTC, Gemini failed to show how it would prevent Bitcoin price manipulation to ensure fair competition for all customers in its BTC Futures Product. However, the Gemini cryptocurrency exchange has opted to end the case ahead of the expected trial on January 21, which would have kickstarted after the much-anticipated inauguration of President-elect Donald Trump.
Furthermore, Gemini cryptocurrency exchange, among other web3 companies, is banking on the upcoming Trump administration to set clearer and better crypto regulations. Possibly, most of the crypto companies are betting on the new leaders of the US SEC chair and CFTC to drop crypto-related cases, which were orchestrated by the Biden administration.
Market Implications of Gemini vs. CFTC Case End
The closure of the Gemini case is a huge relief to the Winklevoss brothers, as the exchange can now focus on growing the firm. Furthermore, the entrance of traditional financial (TradFi) institutions into the web3 industry has increased the overall competition to the legacy crypto exchanges.
Early last year, Gemini agreed to pay a $37 million fine and to return at least $1.1 billion to its Earn Program users following a settlement with the New York Department of Financial Services. As a result, Gemini is well positioned to enter the next crypto adoption era free of major litigation, which will help attract more new customers.
Available in more than 70 nations globally, Gemini has inked strategic partnerships with major firms led by Samsung and Brave. According to on-chain data analysis provided by Coinglass, the firm has a Bitcoin balance of about 121,178 BTC, thus qualifying as a top liquid web3 firm.
The company’s products, including the NFT marketplace dubbed Nifty Gateway, will have a chance to grow exponentially in the coming months without major headwinds from legal challenges.
next