Investing.com -- Gemini Trust Co., owned by the Winklevoss twins, has agreed to pay $5 million to settle a claim by the Commodity Futures Trading Commission (CFTC). The claim alleged that Gemini misled the derivatives regulator in an attempt to launch the first US-regulated Bitcoin futures contract.
The proposed settlement was revealed on Monday, in a joint court filing by both parties. This move helped avoid a trial that was scheduled to start on Jan. 21, the day after Donald Trump's second term inauguration as US president. Gemini settled the case without admitting or denying liability.
The CFTC initially sued Gemini in 2022, in a Manhattan federal court. The lawsuit claimed that Gemini made false and misleading statements about its measures to prevent Bitcoin price manipulation. These prices were to act as a reference for derivatives based on the cryptocurrency.
The civil enforcement case against Gemini Trust is one of several court actions taken by President Joe Biden's administration to establish regulatory authority over cryptocurrencies. Many crypto advocates have praised Trump's election, expecting his administration to support more industry-friendly regulation.
In late 2017 or early 2018, Gemini handed over subpoenaed laptops from two former executives. This was part of a related criminal investigation that concluded without any charges filed.
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