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Gemini, the crypto exchange founded by the Winklevoss twins, is making headlines again. The platform has agreed to pay a $5 million fine to settle a major lawsuit with the Commodity Futures Trading Commission (CFTC), which accused it of giving false information to gain approval for the first U.S.-regulated Bitcoin futures contract.
Gemini Agrees to $5 Million Fine to Settle Lawsuit
In a recent filing on Jan 6 in the US District Court for the Southern District of New York, both parties signed a proposed consent order to resolve all outstanding claims.
If the court approves, Gemini will pay a $5 million civil penalty, ending the lawsuit. Meanwhile, this move allows Gemini to avoid a civil trial on January 21, when the CFTC planned to argue that the exchange made “false and misleading” statements. Interestingly, this date coincides with Donald Trump’s inauguration for his second term as U.S. president.
Under the settlement terms, Gemini does not admit or deny any wrongdoing but agrees to the $5 million civil monetary penalty
Gemini Regulatory Challenges
This case is one of several regulatory hurdles Gemini has faced. The exchange continues to battle a lawsuit from the U.S. Securities and Exchange Commission (SEC), which claims Gemini and Genesis Global Capital illegally raised billions of dollars through the Gemini Earn program.
In February, Gemini agreed to return at least $1.1 billion to customers as part of a separate settlement with New York regulators.
The settlement highlights Gemini’s effort to resolve its disputes while avoiding prolonged legal battles.