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Gemini Trust Slapped with $5 Million Penalty for Misleading CFTC

CFTC Consent Order against Gemini Trust
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The U.S. Commodity Futures Trading Commission (CFTC) has issued a $5 million fine to Gemini Trust Company LLC for making false or misleading statements during a 2017 bitcoin futures contract certification process. The order stems from the CFTC’s July 2, 2022, complaint against Gemini Trust. The case highlights the importance of truthfulness in regulatory disclosures.


Key Points:

  • Who? Gemini Trust Company LLC, a New York-based trust company.
  • What? False or misleading statements to the CFTC during a bitcoin futures contract self-certification process.
  • Penalty: $5 million civil monetary fine and a permanent injunction.
  • Violations: Misrepresentation of prefunding requirements, trade volume, fee rebates, and more.

Short Narrative:

The U.S. District Court for the Southern District of New York has finalized a consent order against Gemini Trust, finding it guilty of making materially false or misleading statements to the CFTC during a 2017 self-certification process for a bitcoin futures contract. Gemini‘s misrepresentations included claims about prefunding requirements, trade volume, and liquidity, all crucial to determining whether the product would be vulnerable to market manipulation. The $5 million penalty underscores the regulatory mandate for transparency, even in emerging digital asset markets.


Actionable Insight:

This enforcement action serves as a critical reminder for firms operating in the crypto sector: transparency and compliance with regulatory standards are non-negotiable. Misrepresentation risks not only financial penalties but also permanent damage to institutional credibility.


Call for Information:

FinTelegram encourages whistleblowers and insiders with knowledge of similar regulatory violations to share their information via Whistle42.com. Your insights can contribute to strengthening market integrity.

Stay informed, stay compliant.

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