Gemini Accuses CFTC of Misconduct, Calls Seven-Year Probe Baseless

Gemini Slams CFTC for Alleged Misconduct

Gemini, the cryptocurrency exchange of the Winklevoss twins, has filed a formal complaint against the Commodity Futures Trading Commission (CFTC), denouncing a seven-year-long legal probe as politically motivated and meritless.

In a 13-page lengthy letter to CFTC Inspector General Christopher Skinner, Gemini attributes blame to the agency’s enforcement arm for pursuing a “lawfare” campaign that has its genesis in personal ambition rather than justice.

Dispute Dates Back to 2017

The dispute centers on a 2022 CFTC complaint alleging Gemini made false claims about its 2017 Bitcoin auction process. The case settled for $5 million. But Gemini says the allegations were built on dishonest testimony by an angry former employee who was disgruntled with the firm, whom Gemini alleges lied under oath and then committed fraud.

It did not matter that Gemini Trust was the actual victim,” the letter complains, blaming the enforcement team for spending taxpayers’ money to fulfill personal agendas.

Claims of Overregulation

The enforcement department strayed from its mission to protect markets and instead targeted the exchange with no proof of harm or ill, Gemini alleges. The letter asks for inside accountability and adds to calls for reform by current Commissioner Caroline Pham.

CFTC Leadership Drives Reform

Regulatory reform champion Caroline Pham has led an open and forward-thinking approach since assuming office. Pham has promoted industry dialogue, balanced regulation, and strict implementation of the law by both regulators and market participants.

Speaking at the Coinbase Annual Summit, Pham restated the CFTC’s objective of making crypto regulation more contemporary while upholding equity and legality.