As a crypto investor, I’ve found myself in a situation where Gemini Trust Co., a company I’m familiar with, has decided to part ways with $5 million as part of a settlement agreement with the Commodity Futures Trading Commission (CFTC). The lawsuit alleged that during their endeavor to introduce the first U.S.-regulated Bitcoin futures contract, Gemini may have provided misleading information to the authorities.
The agreement was made public on Monday through a proposed settlement document submitted to the U.S. District Court in the Southern District of New York.
Details from the Settlement
As per a Bloomberg report, Gemini is opting for a settlement where they neither accept nor deny responsibility. This decision prevents an initially planned trial slated for January 21, with a pre-trial discussion scheduled for January 13.
In 2022, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against the company in a federal court in Manhattan. The CFTC accused the company of giving incorrect and deceptive information about its strategies to prevent manipulation of Bitcoin prices. These misleading statements were reportedly made between July and December 2017, during the company’s attempts to secure regulatory approval for a Bitcoin futures contract.
Fundamentally, the watchdog suggested that the safety measures against market manipulation seemed insufficient and were perhaps misrepresented to the regulatory body. However, Gemini persistently refuted any allegations of wrongdoing, asserting that their proposed futures contract functioned as intended without inflicting harm on investors.
In an August 2022 statement responding to the complaint, the company asserted:
As a researcher, I can confidently affirm that the reference price served its purpose faithfully, ensuring no investor suffered any harm. There was no evidence of price manipulation in this case, and the Commodity Futures Trading Commission (CFTC) has not raised any concerns regarding the contract itself.
During the course of the investigation, it complied with a subpoena by delivering laptops that were owned by two former high-ranking officials for a related legal investigation. This criminal investigation ended without any charges being filed, but the civil enforcement case continued, eventually resulting in a $5 million settlement.
The Trump Effect
During Joe Biden’s presidency, one of many cases against Gemini was initiated, reflecting a stronger focus on tighter regulation in the cryptocurrency sector. Yet, as Donald Trump prepares to return for a second term on January 20th, crypto supporters look forward to a more relaxed regulatory atmosphere.
Brad Garlinghouse, the CEO of Ripple, has referenced a “Trump effect” on the company’s business approach. He highlighted that 75% of Ripple’s job vacancies are now situated in the United States, marking a significant change from the company’s previous focus on global expansion due to regulatory uncertainties under the tenure of former Securities and Exchange Commission (SEC) Chair Gary Gensler.
In the final six weeks of 2024, Garlinghouse noted, the company sealed more American business contracts than it had during the entire preceding six-month period.
Currently, the approach of the inauguration is stirring up a surge in meme coins linked to Donald Trump. Some of these coins are experiencing significant increases, even doubling or tripling their value, as enthusiasm for cryptocurrencies escalates due to expectations of more favorable regulations.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2025-01-08 01:38