The crypto exchange Gemini has accused the Commodity Futures Trading Commission (CFTC) of conducting a lengthy and unfair legal campaign against the company.
In a letter sent on June 13 to CFTC Inspector General Christopher Skinner, Gemini
$213.23M
claims the agency’s enforcement team spent seven years pushing a case for personal gain rather than public interest.
The letter describes how certain CFTC staff members allegedly used their positions to target the company to advance their careers.
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Instead of focusing on protecting markets or investors, the team allegedly attempted to secure a major case that would garner attention. Gemini noted that this led to unnecessary legal action that wasted time and taxpayer money.
Gemini explained that the case started from a report filed by a former employee who had been let go and wanted revenge. They described the report as false and said it was full of misleading claims, which should not have formed the basis of a government investigation.
At the center of the dispute is a 2022 lawsuit brought by the CFTC. In that case, the agency said Gemini had given incorrect or incomplete information to regulators in 2017. The topic was the company’s Bitcoin
$104,626.69
auction system, which helped set prices used by Cboe for its Bitcoin futures contract.
Gemini disagrees with those accusations but chose to end the case. In January, the company paid a $5 million fine without admitting fault. However, in its letter, Gemini stated that the real problem was not the claims themselves but the way the case was handled.
Meanwhile, Paradigm recently submitted a legal brief supporting Roman Storm, a co-founder of Tornado Cash. What did the document cover? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
