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Gemini Trust Agrees to Pay $5 Million to Settle CFTC Case
January 7, 2025 – In a sudden turn of events, Gemini Trust Company has agreed to pay $5 million to settle allegations made by the U.S. Commodity Futures Trading Commission (CFTC). This move brings an end to the ongoing dispute between the two entities.
The controversy stems from accusations that Gemini provided misleading information during its 2017 evaluation for a proposed bitcoin futures contract. According to reports, Gemini is alleged to have misrepresented whether the reference price would be susceptible to manipulation. The CFTC claimed that certain personnel at Gemini knew or reasonably should have known that their statements were inaccurate.
Gemini has consistently denied these allegations, stating that the contract functioned as intended, and no investors were harmed or price manipulation occurred. In its August 2022 response, Gemini emphasized that the CFTC had not expressed any concerns with the contract itself.
Initially, legal proceedings were set to proceed, with a pre-trial conference scheduled for January 13 and a trial expected to begin on January 21. However, this settlement has brought an abrupt conclusion to the case.
The financial penalty of $5 million is a significant sum, signaling the gravity of the allegations made against Gemini. As the situation comes to a close, it remains unclear whether any individuals will face disciplinary action or if the company’s practices have been reformed as a result of this settlement.
This development marks a notable conclusion to an ongoing dispute that has garnered attention within the cryptocurrency and blockchain spaces.
Source: http://www.cryptonewsz.com
