Gemini Trust Co., the company established by Cameron and Tyler Winklevoss, has reached a settlement of the case with the CFTC for $5 million. The complaint revolved around accusations that Gemini Trust submitted false and misleading information when trying to establish the first US-licensed Bitcoin futures contract.
Winklevoss Twins’ Gemini Ends CFTC Dispute With $5M Settlement
In a Bloomberg report, Gemini Trust agreed to settle with the CFTC and paid $5 million. This settlement is with respect to the regulator’s claims without Gemini admitting or denying liability. The case was filed in Manhattan federal court and the case was set to go to trial on January 21, 2025.
The legal action arose from allegations that Gemini Trust misled the CFTC in 2017 while describing mechanisms to prevent manipulation in Bitcoin pricing. These mechanisms were to serve as references for derivatives linked to the cryptocurrency.
This Gemini settlement comes after another recent prediction by former SEC enforcement lawyer Marc Fagel, who stated that a settlement is likely in the Ripple SEC case. Fagel noted that both Ripple and the SEC appealed parts of the case they lost, leaving penalties on hold. He believes the incoming Trump administration and SEC Chair Paul Atkins may decide not to pursue the appeal, prompting a settlement.
CFTC Allegations and Regulatory Efforts
The CFTC had alleged that Gemini Trust made false statements regarding its Bitcoin futures contract proposal. The regulator argued that the company’s safeguards against price manipulation were insufficient and not accurately represented to the commission.
During the investigation, Gemini Trust provided subpoenaed laptops belonging to two former executives. These were part of a related criminal probe that ended without any charges. While the criminal investigation closed, the civil case brought by the CFTC continued, ultimately resulting in a $5 million settlement.
The civil enforcement case was one of many brought under President Joe Biden’s administration, which sought to tighten regulatory oversight. With President Donald Trump set to begin his second term on January 20, 2025, crypto advocates anticipate a shift toward industry-friendly policies.
Moreover, in a recent report, Brad Garlinghouse highlighted the “Trump effect” on Ripple, revealing that 75% of Ripple’s open roles are now US-based. He noted that the company signed more US deals in the last six weeks of 2024, post-Trump’s victory, than in the prior six months. Garlinghouse also emphasized the success of Ripple’s RLUSD stablecoin, which recently surpassed PYUSD and EURC in 24-hour trading volume.
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