The U.S. Commodity Futures Trading Commission (CFTC) asked a judge to vacate the agency's $5 million penalty against Gemini Trust Company, founded by twin brothers Tyler and Cameron Winklevoss. The CFTC admitted that regulators should never have accused Gemini of making false statements in connection with its bitcoin futures business, as reported by Reuters. According to the joint court filing, the settlement was based on a whistleblower account deemed not credible.
Key Takeaways
The U.S. Commodity Futures Trading Commission (CFTC) has asked a judge to vacate its $5 million penalty against Gemini Trust Company, founded by Tyler and Cameron Winklevoss. The CFTC admitted it should not have accused Gemini of making false statements regarding its bitcoin futures business. Both parties agreed that the settlement should be rescinded due to changed enforcement policies under President Trump's administration.
- CFTC seeks to vacate $5 million penalty against Gemini
- Settlement was made during Biden's administration and is now being challenged
- The CFTC accused Gemini of false statements based on a whistleblower account deemed not credible
- Gemini received approval for its prediction market product, called Gemini Titan, in December 2025
The Winklevoss brothers donated $1 million each in Bitcoin to President Donald Trump's election campaign in 2024. The CFTC and Gemini agreed that the settlement should be vacated due to changed enforcement policies under Trump's administration, as reported by Reuters. The agency admitted it resorted to inappropriate tactics to bring a lawsuit against Gemini.
The case involved allegations of fraud by Gemini's former chief operating officer and two customers who received fraudulent rebates. Instead of investigating the fraud against Gemini, the CFTC investigated Gemini for allegedly misleading statements about its bitcoin futures trading business, according to Reuters. The court filing also revealed that regulators inappropriately leveraged their power by telling Gemini it would not receive approval for a new prediction market platform while the enforcement action was pending.
The Winklevoss twins first gained public prominence after suing Mark Zuckerberg over allegations of stolen ideas for Facebook, settling in 2008. The case highlights ongoing tensions between regulators and cryptocurrency exchanges, with significant political implications given the brothers' donations to Trump's campaign. It remains unclear whether Gemini will be refunded the $5 million penalty it already paid.
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