Winklevoss Twins Agree to Pay $5 Million Fine to CFTC
Gemini co-founders Tyler and Cameron Winklevoss have agreed to pay a $5 million fine to resolve the Commodity Futures Trading Commission (CFTC) allegations. The allegations stated that they misled regulators during their bid to launch the first US-regulated Bitcoin (BTC) futures contract.
The settlement, as reported by Bloomberg News, averts a trial that was set to begin on Jan. 21, the day after President-elect Donald Trump’s second presidential inauguration.
CFTC Lawsuit and Settlement Terms
- The CFTC’s 2022 lawsuit accused Gemini of providing “false and misleading statements” regarding safeguards against price manipulation in Bitcoin markets.
- Assurances were central to the CFTC’s evaluation of Gemini’s proposed Bitcoin futures contracts, which would have tied a reference rate derived from the exchange’s pricing data.
- Under the settlement terms, Gemini did not admit or deny any wrongdoing.
Regulatory Developments
In a separate regulatory development, Gemini announced its plans to exit the Canadian market on Sept. 30, 2024. This decision came amidst regulatory challenges faced by major crypto firms in the country.
Gemini’s Expansion in Singapore
- Gemini secured a license in Singapore to provide cross-border money transfer and digital payment token services.
- Singapore is embracing various global crypto firms, such as OKX, Upbit, Ripple, and Coinbase.
