U.S. Regulator Sues Gemini Over Bitcoin Futures Manipulation

The U.S Commodity Futures Trading Commission (CFTC) has sued crypto exchange Gemini . The commission alleged that the company made misleading statements and omissions to the agency. The charges include assertions regarding the Bitcoin (BTC) futures contract pursued by the firm back in 2017.

Gemini submitted misleading statements

The agency claims that from July 2017 to December 2017. Gemini made false statements to the CFTC during ongoing evaluation of the self-certification of a BTC futures contract. The legal contract to buy or sell Bitcoin at the future date was settled by reference to the spot price in the Gemini auction.

Mikko Ohtamaa, Co founder of Trading Protocol, shares some documents depicting the lies told by the Gemini to the CFTC. He mentioned that the accounts were pre funded and some users even traded on credit. The main area under direct evaluation is whether the BTC auction and future contracts were subject to manipulation.

The Gemini in oral and written communication to the Commission told that it was a full reserve exchange. It added that it required all transactions to be fully pre funded. This aspect was presented in a way to be less susceptible to manipulation. This increased traders’ cost of capital. However, it made improper trading conduct more expensive to malicious actors.

Exchange went against CFTC guidelines

The CFTC seeks remedy from Cameron and Tyler Winklevoss’s crypto exchange for generating gains by unfair means. The complaint alleges that the Gemini contempt the civil monetary penalties, and official orders related to registration and trading.

Cameron and Tyler Winklevoss took to Twitter and showed their lack of interest in this claim. However, they also called it “nonsense”. Meanwhile, the complaint mentioned that Gemini personnel knew that such statements were false and misleading beforehand.

Gretchen Lowe, Acting Director of Enforcement said that the commission’s this move will send a strong message to the market. It will imply that CFTC is working to safeguard the integrity of the market.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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