Crypto Exchange Gemini Sued Over Futures Contract Statements

Leading crypto exchange, Gemini, has been sued by the U.S Commodity Futures Trading Commission (CFTC) over statements regarding its earliest Bitcoin futures contracts.

The CFTC allege that Gemini made false or misleading statements concerning its plans for a Bitcoin futures product during an evaluation in 2017.

The regulator says that Gemini gave misleading information (or omitted information) about whether its futures contract would be vulnerable to manipulation.

Furthermore, the CFTC suggests that the statements in question concern the size and liquidity of the Gemini Exchange and Gemini Bitcoin Auction as well as the number of participants.

The suit also says that Gemini made statements that misrepresented its pre-funding requirements. It alleges that Gemini loaned money to customers to raise trading volumes.

Additionally, the exchange supposedly sent advances to customers to allow those customers to begin trading before they fully funded their accounts.

The CFTC added that the futures contract in question is especially significant because it was one of the first cryptocurrency futures contracts listed on a designated contract market.

Gemini is currently the 16th largest crypto exchange, as it reported a 24-hour volume of $77 million today.

Other major exchanges, including Coinbase, Kraken, and Binance, have been targeted by the CFTC in the past as well.

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