Gemini co-founders Tyler and Cameron Winklevoss have agreed to pay a $5 million fine to settle allegations by the Commodity Futures Trading Commission (CFTC) that they misled regulators during their attempt to launch the first US-regulated Bitcoin (BTC) futures contract. This resolution comes as a way to avoid a trial that was scheduled to begin on January 21, just after the second presidential inauguration of President-elect Donald Trump.
The CFTC’s lawsuit, filed in 2022, claimed that Gemini provided false and misleading statements about safeguards against price manipulation in Bitcoin markets. These assurances were crucial for the CFTC’s evaluation of Gemini’s proposed Bitcoin futures contracts, which would have been tied to a reference rate based on the exchange’s pricing data.
Although Gemini did not admit or deny any wrongdoing as part of the settlement, the lawsuit also mentioned subpoenaed laptops from two former Gemini executives in connection with a related criminal investigation, which ultimately did not result in any charges. These laptops were provided to regulators during a period of heightened scrutiny in late 2017 and early 2018 as Gemini aimed to establish itself as a leader in regulatory compliance within the crypto industry.
In a separate regulatory development, Gemini recently announced its decision to exit the Canadian market by September 30, 2024. While the exchange did not specify the reasons behind this move, it coincided with other major crypto firms like Bybit, Binance, and Paxos leaving Canada due to regulatory challenges.
On the other hand, Gemini has obtained a license in Singapore to offer cross-border money transfer and digital payment token services. Singapore has been welcoming various global crypto companies, including OKX, Upbit, Ripple, and Coinbase, in contrast to the exodus seen in Canada.
Overall, the Winklevoss twins’ company is navigating through regulatory changes and expanding its presence in international markets, showcasing its commitment to compliance and growth in the evolving crypto landscape.