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The US Futures Trading Commission (CFTC) has filed a lawsuit against the Gemini cryptocurrency exchange. The lawsuit alleges that the company “misled the regulator by answering questions about a futures contract tied to the price of bitcoin on the Gemini platform,” Bloomberg reports.
According to the agency, the lawsuit was filed in the federal court of Manhattan. According to the document, in July-December 2017, at meetings with CFTC employees, representatives of the company “made false and misleading statements” regarding the activities of the Gemini Bitcoin Auction platform and product.
“This bitcoin-based futures contract was of particular importance as it was supposed to be one of the first digital asset futures placed on a specially created market, while investors showed great interest in accessing bitcoin through derivatives markets,” the CFTC said in a lawsuit.
The Gemini Bitcoin Auction pricing mechanism was used in the Chicago Board Options Exchange’s (CBOE) bitcoin settlement futures when the product was launched in 2017.
In 2019, in the face of a bear market and competition with the CME, the site excluded this tool from the listing.
Recall that in May 2022, CFTC Commissioner Caroline Pham compared cryptocurrencies with lottery tickets.
#CFTC #Sues #Winklevos #Twin #Bitcoin #Exchange #Gemini
