• February 27, 2024

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CFTC Sues Crypto Exchange Gemini

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The Futures Trading Commission (CFTC) has filed a lawsuit against crypto exchange Gemini, Bloomberg has learned.

The lawsuit alleges the company “misled the regulator by answering questions about a futures contract pegged to the price of bitcoin on the Gemini platform.”

According to the publication, the lawsuit was filed in federal court in Manhattan. According to the document, in July-December 2017, at meetings with CFTC employees, company representatives “made false and misleading statements” regarding the activities of the Gemini Bitcoin Auction platform and product.

Per the document:

“This Bitcoin-based futures contract was of particular importance as it was to be one of the first digital asset futures to be listed on a purpose-built contract market, at a time when investors showed strong interest in accessing bitcoin through derivatives markets.”

The Gemini Bitcoin Auction pricing mechanism was used in the Chicago Board Options Exchange (CBOE) Bitcoin settled futures when the product was launched in 2017.