Cryptocurrency exchange Gemini has filed a complaint against the Commodity Futures Trading Commission (CFTC), claiming that its allegations were based on false data and career ambitions of staff.
Gemini's Accusations Against CFTC
In a letter to CFTC Inspector General Christopher Skinner, Gemini representatives assert that CFTC attorneys based their case on a dubious whistleblower report. They claim that CFTC staff "selectively and unfairly weaponized" the Commodity Exchange Act to bring false charges against the company. The letter states that these actions were motivated by the staff's desire to advance their careers.
Role of the Whistleblower and Filing of Report
Gemini claims that the CFTC investigation and lawsuit relied on a false whistleblower report filed in 2017 by the exchange's former operating chief, Benjamin Small, who allegedly initiated a "malicious campaign" against the firm after his termination. Small purportedly provided biased evidence regarding the exchange's disclosures on Bitcoin futures, implicating other companies and their executives.
Recommendations for CFTC Reforms
Gemini calls on CFTC chair Carolyn Pham to take steps to reform the Division of Enforcement, especially following her recent statements addressing the need for action against disproportionate enforcement behavior. The exchange offered its assistance to CFTC, emphasizing the necessity for serious introspection and long-term commitments to avoid similar situations in the future.
Gemini's allegations against CFTC highlight the importance of transparent and fair investigations in the cryptocurrency sector, where misinformation could have serious consequences.
