Crypto exchange Gemini criticized the U.S. Commodity Futures Trading Commission (CFTC) for improper resource use in an investigation based on unsubstantiated claims.
Gemini's Accusations Against CFTC
In a letter to the CFTC’s Inspector General, Gemini’s lawyer Jack Baughman stated that the agency's investigation relied on 'fraudulent evidence' from a disgruntled former employee. He claimed that the CFTC used taxpayer resources for an extended pursuit of the company.
Details of the Case and Consequences
At the center of the case is Benjamin Small, the former COO of Gemini, who filed a complaint in 2017. However, Gemini argued that Small was fired for gross negligence, and his complaint stemmed from revenge. The investigation dragged on for years, despite the arbitration ruling in favor of Gemini in 2022.
Call for Reforms
Baughman noted that CFTC lawyers seem more interested in achieving high-profile wins rather than enforcing the law fairly. Gemini is advocating for reform, emphasizing the economic damage and stalled innovations caused by the CFTC's actions.
Gemini continues to defend its reputation while calling for reforms in the CFTC, highlighting flaws in the current regulatory approach and the burden on taxpayers.
