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CFTC sues Gemini over 'false statements' relating bitcoin futures plan

CFTC sues Gemini over 'false statements' relating bitcoin futures plan

The Commodity Futures Trading Commission (CFTC) has sued Gemini Trust accusing the crypto exchange of false statements relating to the self-certification of a bitcoin futures product.

According to the civil complaint, between July and December 2017 Gemini made false or misleading statements of material facts, or omitted these facts, to the CFTC as the watchdog was evaluating the potential self-certification of a bitcoin futures contract.

The statements were false or misleading with respect to, among other things, "facts relevant to understanding whether the proposed Bitcoin Futures Contract would be readily susceptible to manipulation".

Gemini staff "knew or reasonably should have known" that the statements were false or misleading, says the CFTC.

The regulator is seeking disgorgement of ill-gotten gains, civil monetary penalties, and injunctions relating to registration and trading.

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

The case comes as Gemini reveals that it is set to slash its headcount by about 10% as the industry faces up to the prospect of a "crypto winter".

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