Gemini Exchange Files Complaint Against CFTC for Unjust Legal Campaign
Gemini, a prominent crypto exchange, has recently filed a formal complaint against the Commodity Futures Trading Commission’s (CFTC) Division of Enforcement (DOE), alleging a prolonged and unjustified legal campaign against the company. The complaint was submitted to the CFTC’s Office of the Inspector General on June 13, as revealed by Gemini co-founder Tyler Winklevoss.
The complaints lodged by Gemini accuse the CFTC lawyers of misusing their offices and taxpayer dollars to engage in what they described as “trophy-hunting lawfare” against the exchange. The firm claims that the CFTC pursued legal action against them despite knowing that Gemini was actually a victim of a multi-million dollar rebate fraud.
This development comes after Gemini had agreed to a $5 million settlement with the CFTC earlier. The agency had accused the exchange of misleading regulators during the 2017 self-certification of a Bitcoin futures product.
Gemini’s complaints against the CFTC include allegations that the DOE has spent the past seven years targeting the exchange without providing substantial evidence of any wrongdoing. The exchange also criticized the enforcement team for allegedly ignoring facts and due process, focusing on achieving a public victory at the expense of fairness and taxpayer resources.
Moreover, Gemini claimed that the CFTC attorneys involved in the case were driven by personal ambition rather than a genuine interest in protecting market participants. The exchange accused the agency of spending millions of public dollars prosecuting a firm that it believed was a victim of external fraud.
Jack Baughman, a prominent trial attorney, echoed Gemini’s sentiments, highlighting a broader issue with federal and state regulators who often exhibit arrogance and abuse of power.
Gemini clarified that its settlement with the CFTC was not an admission of guilt but a strategic move to avoid a protracted legal battle and further penalties. The exchange criticized the CFTC’s internal culture, suggesting that enforcement staff were more focused on internal politics than fair regulation.
In light of these developments, Gemini called for sweeping reforms at the CFTC, emphasizing the need to reevaluate the agency’s internal culture and structure. The exchange argued that unchecked enforcement practices had caused real economic harm and demanded a shift towards a more transparent and fair regulatory environment.
Overall, Gemini’s complaint against the CFTC sheds light on the challenges and complexities of regulatory oversight in the rapidly evolving crypto industry, underscoring the importance of accountability and fairness in enforcement actions.