CFTC Files Lawsuit Against Gemini for Misleading Information on Bitcoin Futures

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CFTC Files Lawsuit Against Gemini for Misleading Information on Bitcoin Futures By Angel Di Matteo @shadowargel

In this regard, the CFTC indicates that Gemini provided false information to the regulator about its trading and auction platform for Bitcoin, in which it omitted information that would make it possible to clarify whether these products are susceptible to market manipulation.

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  • CFTC demand to Gemini for misleading information about futures Bitcoin.
  • He alleges that they gave false information and omitted important details about the product.
  • Gemini He alleges that he acted in accordance with the law.

The Commodity Futures Trading Commission, better known by its acronym in English as the CFTC, filed a lawsuit against the US-based international exchange, Gemini, which is directed by the brothers Cameron and Tyler Winklevoss.

CFTC files lawsuit against exchange Gemini

This was revealed by the CFTC in a statement published today, in which he points to Gemini by “false or misleading statements of material facts or omissions to represent… to the CFTC in connection with the self-certification of a Bitcoin futures product.”

In this regard, in the statement presented by the CFTC it reads:

“The CFTC is seeking the return of ill-gotten gains, civil money penalties, registration and trading-related injunctions, and an injunction against further violations of the Commodity Exchange Act (CEA), according to the charges.”

Charges imputed to Gemini

As for the crimes that Gemini is accused of, the interim director of the area of Compliance of the CFTC, Gretchen Lowe commented:

“Making false or misleading statements to the CFTC in connection with the certification of a futures product undermines the agency’s work to ensure the financial integrity of all transactions subject to the CEA, protect market participants, deter and prevent price manipulation and promote responsible innovation and fair competition. This enforcement action sends a strong message that the Commission will act to safeguard the integrity of the market oversight process.”

Specifically, the CFTC indicates that Gemini provided information to the regulator about its trading and auction platform for Bitcoin, but they point out that part of this was false or misleading, since they would have transmitted erroneous data and would have omitted important details to understand the futures contracts of BTC proposed, especially by not clarifying whether they could be susceptible to manipulation.

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Faced with this complaint by the CFTC, a representative of Gemini clarified that the company has always been at the forefront of regulatory matters from day one, so they have been operating in accordance with current laws for eight years, making sure to always do the right thing, so they hope to prove their innocence in court whenever possible. the moment.

Particularly complex moment for the market

The measures by the CFTC against Gemini They come to place at a time when the crypto market in general is facing a general decline, which has made its weight felt strongly on the commercial evolution of the main exponents of the sector.

Analysts and enthusiasts point out that this meets the conditions to qualify as a “Crypto Winter”, that is, a season in which the market suffers and current liquidity drops significantly. Although this was something perfectly to be expected after the evolution seen between 2020 and the beginning of 2022, events such as the economic reforms announced by the FED in the US and the fall of Terra accelerated the process dramatically.

Gemini It has not been oblivious to this phenomenon and the fall in the market has also led it to rethink its operations. Just today the exchange announced the dismissal of 10% of its workforce as a measure to cope with the effects of the Crypto winter.


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Font: TheBlockCrypto, Cointelegraph, CFTC

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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