Judge Upholds $5M Settlement Against Gemini by CFTC
- A US federal judge rejected a request from Gemini and the CFTC to overturn a $5 million settlement.
- The ruling was made by US District Judge Alvin Hellerstein on Thursday, affirming the January settlement despite changes in enforcement standards.
- The case involved allegations that Gemini misrepresented its Bitcoin auction operations, including undisclosed customer borrowing and self-trading practices.
- Gemini has already paid the penalty, which will not be refunded even if the settlement is overturned.
- The judge stated that Gemini was aware of issues with the CFTC’s case when it settled less than three weeks before trial.
This ruling maintains a permanent injunction against Gemini, preventing false statements to the CFTC and limiting public denial of findings. The decision underscores ongoing scrutiny of regulatory practices within cryptocurrency markets.
The court’s affirmation of the $5 million penalty highlights significant compliance issues for CFTC regulations in crypto trading activities. (Source)
