The United States Commodity Futures Trading Commission (CFTC) and Gemini Trust Company have reached an agreement that could allow the firm to avoid a civil trial if approved by a judge.
Agreement Details
According to a Jan. 6 filing in the US District Court for the Southern District of New York, the CFTC filed a proposed consent order to resolve all outstanding claims against Gemini. If approved, Gemini would be required to pay a $5 million civil monetary penalty and be enjoined from making "false or misleading statements" to the CFTC.
Charges Against Gemini
The civil case filed against Gemini by the CFTC in June 2022 alleged that the crypto firm made false or misleading statements related to its 2017 bid to offer Bitcoin futures contracts. As part of the proposed order, the crypto firm would acknowledge this conduct, admitting “that Gemini Trust reasonably should have known [the statements] were false or misleading.”
Other CFTC Cases with Crypto Firms
The CFTC has several cases pending with crypto firms over alleged violations of US commodities laws. In December, the commission reported that it had recovered more than $17 billion in civil monetary penalties, disgorgement and restitution from cases, including crypto firms in the 2024 fiscal year.
The agreement between CFTC and Gemini might set a significant precedent for future regulatory actions in the US crypto industry.
