Gemini, a crypto exchange founded by the Winklevoss twins, was accused of providing incomplete information on price manipulation prevention measures in 2017. The exchange settled the matter before a January 21, 2025 trial, paying $5 million.
Settlement Details
Gemini was accused in Manhattan court filings of providing inaccurate or incomplete information to the CFTC in 2017 about its measures to prevent price manipulation. Despite a jury trial being scheduled for January 21, 2025, both sides settled the dispute out of court, with the exchange paying $5 million to conclude the matter with the CFTC, while maintaining that it acted in good faith.
Alleged Misrepresentations
The CFTC alleged that Gemini misled the regulator about the measures used to prevent manipulation in its Bitcoin spot market. The agency argued that the claimed safeguards were not accurately represented, leaving potential gaps in market oversight. A separate criminal probe on similar concerns ended without charges against Gemini.
Broader Regulatory Context
This settlement is another example of increased scrutiny on the crypto industry under the Biden administration, which has emphasized tighter oversight and regulatory enforcement. With Donald Trump set to begin his second term on January 20, 2025, expectations of a more crypto-friendly approach are rising.
Gemini remains operational and continues to emphasize transparent trading practices. The crypto industry is watching how the incoming Trump administration might influence regulatory approaches, potentially reshaping the future of crypto markets in the U.S.
