- Winklevoss twins face a problem as the Futures Trading Commission (CFTC) filed a suit against Gemini Trust Company.
- The Commission calls for civil monetary penalties and an order blocking Gemini and its affiliates from soliciting investments or trading commodities.
- The Commission has been quite active in cases regarding futures contracts and even cryptocurrency frauds.
Brothers Allegedly Manipulated The Shown Gemini Bitcoin Futures Contract
The famous Winklevoss brothers recently faced dark clouds as the Commodity Futures Trading Commission (CFTC) filed a suit against Gemini Trust Company. It is basically a crypto trust company founded by Tyler and Cameron Winklevoss.
The Commission asserts that Gemini manipulated the primary details of its exchange and futures contracts in meetings with regulators in the year 2017. And as a punishment, the Commission is calling for civil monetary penalties along with an order blocking Gemini and its affiliates from soliciting investments or trading commodities.
The complaint especially emphasises on Bitcoin Futures Contracts of Gemini, which is among the first financial instruments facilitating investors to trade on expectations of a digital asset’s future value.
And as the futures contracts were connected to Bitcoin’s settlement price on Gemini’s exchange, any alteration with the behaviour in the exchange can be counted as manipulation of the futures price.
Furthermore, the Commission claims that there are various times that these manipulations were carried out. One of them was when Gemini allegedly made unsecured loans to participants in the market. Whereas in some other cases, the company also allegedly enabled trades prior to the settlement of the transfers.
According to the complaint, credits and advances could misleadingly alter the apparent volume, liquidity or the number of participants trading on the Gemini exchange and in the Gemini bitcoin auction.
Earlier, Gemini had been under investigation by the Manhattan US attorney’s office.
Gemini is a privately owned crypto exchange that got approval from the New York Department of Financial Services (NYDFS) to launch its stablecoin in the year 2018.
The CFTC has been quite active when it comes to cases regarding futures contracts, not only that but also related to cryptocurrency frauds.
Source: https://www.thecoinrepublic.com/2022/06/03/regulators-sue-crypto-firm-of-winklevoss-twins-concerning-futures-contracts/