US CFTC sues Gemini Trust over false statements on bitcoin futures

The US CFTC filed a federal lawsuit in New York on Tuesday accusing Gemini Trust Co of making false and misleading statements regarding a futures contract the firm was pursuing in 2017.

The agency contends that Gemini, a coin exchange led by Cameron and Tyler Winklevoss, has violated federal laws governing commodities, and is seeking civil fines and other remedies.

Gemini officials knew or reasonably should have known that the statements and information conveyed by the company were false or misleading with respect to how a proposed bitcoin futures contract could be susceptible to manipulation, according to the filing.

We have an eight year track record of asking for permission, not forgiveness, and always doing the right thing. Gemini said in a statement that they look forward to definitively proving this in court.

The lawsuit sends a strong message that the Commission will act to protect the integrity of the market oversight process, according to Gretchen Lowe, acting director of enforcement at the CFTC. The CFTC filing said that Gemini's proposed bitcoins futures contract was particularly significant because it was one of the first digital asset futures contracts listed on a designated contract market.

In December 2017 a Gemini bitcoin futures contract was trading on the Cboe Futures Exchange under the ticker XBT, although it was not immediately clear if the CFTC's lawsuit referenced this contract in particular.