Gemini says a false whistleblower report led to an unfair lawsuit from the CFTC.
- Gemini accuses CFTC staff of acting for personal gain.
- The lawsuit centered on a 2017 Bitcoin futures contract review.
- Gemini settled the case in 2024 with a $5M payment.
Gemini Says Legal Action Was Unfair
Crypto exchange Gemini Trust has accused the U.S. Commodity Futures Trading Commission (CFTC) of bringing unfair charges against it. In a letter to CFTC Inspector General Christopher Skinner, the company said the lawsuit was based on a false report by a former employee.
The CFTC sued Gemini in June 2022. It claimed the company gave false or misleading information while the agency assessed a Bitcoin futures contract in 2017. Gemini said the case was motivated by CFTC staff trying to gain attention and career benefits.
Whistleblower Report Called “False”
Gemini claims the lawsuit was triggered by a whistleblower report from a former executive named Benjamin Small. According to Gemini, Small was fired after trying to hide losses linked to a rebate fraud involving firms like Hashtech LLC and Cardano Singapore PTE Ltd.
The company said Small launched a campaign of lies against Gemini, which led him to submit a report to CFTC. Gemini stated that the CFTC “unquestioningly” followed those claims and started an investigation in 2018.
Bitcoin Futures and Settlement
Gemini said its Bitcoin futures contract worked without issues for 19 months. It said there were no signs of market manipulation during that time. Still, the CFTC kept pursuing the case.
In January 2024, Gemini agreed to pay a $5 million fine to settle the case. However, it did not admit or deny any of the agency’s findings. The company said at the time it had no other choice.
Call for Reform at CFTC
Gemini praised CFTC acting commissioner Caroline Pham for trying to fix the agency’s Division of Enforcement. Pham recently acknowledged concerns over the division’s past actions and called for improvements.
Gemini urged the agency to commit to lasting changes and said it is ready to help with the process.
Source: cointelegraph.com
