CFTC Seeks to Reverse Gemini Settlement in Rare Legal Move

[nihalsari]

The US Commodity Futures Trading Commission has joined Gemini in asking a federal court to vacate a $5 million settlement reached earlier this year, marking a highly unusual reversal for the regulator. The agency now argues that key evidence supporting the original case was flawed and that a whistleblower central to the allegations was ultimately found to be unreliable.

The lawsuit, originally filed in 2022, accused Gemini of providing misleading information related to Bitcoin futures trading activity. However, following an internal review, the CFTC stated that significant deficiencies existed in the evidence and concluded that the complaint should never have been filed. The move has drawn scrutiny from legal observers, with former CFTC Chairman Tim Massad describing the reversal as extraordinarily rare and calling for greater public explanation.

[madmax]

cftc really hit gemini with a lawsuit, settled for $5 million, then came back and said actually never mind our bad