Gemini Says CFTC’s Suit Was Trophy-Hunting Lawfare
Gemini Trust alleges that the Commodity Futures Trading Commission (CFTC) brought "dubious" charges against it in 2022 due to the self-serving motives of its litigators. In a letter to CFTC Inspector General Christopher Skinner, Gemini claims that the agency's Division of Enforcement (DOE) relied on a false whistleblower report from a discredited former employee, Benjamin Small, to initiate the lawsuit. The CFTC sued Gemini in June 2022 for allegedly making misleading statements in 2017 regarding a Bitcoin futures contract. Gemini settled the claims for $5 million in January without admitting wrongdoing. The exchange asserts that Small's whistleblower report stemmed from a personal vendetta after his dismissal for misconduct related to a rebate fraud scheme. Gemini contends that its Bitcoin futures contract operated without manipulation for 19 months and calls for a long-term commitment from the CFTC to reform the DOE and prevent future misconduct.
