cryptonewsz.com
Gemini Trust Company has reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC), and has agreed to pay $5 million to resolve allegations of giving misleading information to the regulator.
According to reports, “proposed consent order” was signed on Monday, allowing Gemini to settle the case without admitting or denying the allegations.
Gemini Trust vs CFTC
The dispute stems from a lawsuit filed by the CFTC in June 2022, accusing Gemini of making “false or misleading statements of material facts” during the period between July 2017 and December 2017. These statements were allegedly made while the company was under evaluation for a bitcoin futures contract. The CFTC claimed Gemini misrepresented whether the proposed bitcoin futures contract would be “readily susceptible to manipulation.”
In its complaint, the CFTC stated that Gemini’s personnel knew or reasonably should have known that their statements were inaccurate. However, Gemini has always denied the allegations, arguing that the regulator’s accusations were unjust. “This contract worked as intended-the reference price was reliable, no investors were harmed, no price manipulation occurred, and the CFTC has not alleged any concerns with the contract itself,” Gemini stated in its August 2022 response.
Legal proceedings were initially set to advance, with a pre-trial conference scheduled for January 13 and the trial expected to begin on January 21, amid the leadership change. However, with this agreement, an early conclusion has been brought to the case.