CFTC Steps Up Crypto Enforcement, Sues Exchange Gemini for ‘False’ Statements

Gemini “made false or misleading statements” to the CFTC in 2017 in the bitcoin futures contract evaluation, according to the agency

article-image

Cameron and Tyler Winklevoss, co-founders of Gemini | Source: Shutterstock

share
  • The CFTC filed a complaint against Cameron and Tyler Winklevoss’ Gemini for making false or misleading statements in the bitcoin futures contract evaluation in 2017
  • Earlier Thursday, Gemini said it would lay off 10% of its workers due to the crypto market downturn

The Commodity Futures Trading Commission sued cryptocurrency exchange Gemini Thursday in the regulator’s latest escalation against what it considers bad actors in the digital assets industry. 

In a lawsuit filed in the Southern District of New York, the CFTC claimed the company’s founders, brothers Cameron and Tyler Winklevoss, in 2017 “made false or misleading statements” to the watchdog during the exchange’s application for bitcoin futures contracts — which the CFTC said could have been susceptible to market manipulation. 

In a statement, the CFTC said it will seek disgorgement of ill-gotten gains, monetary penalties and injunctions relating to registration and trading and against further violations of the Commodity Exchange Act.

“This enforcement action sends a strong message that the Commission will act to safeguard the integrity of the market oversight process,” said Gretchen Lowe, the CFTC’s acting director of enforcement. 

Earlier Thursday, Gemini said it would lay off 10% of its workforce due to the crypto market downturn. 

In a statement, a Gemini spokesperson said the company has been a “pioneer and proponent of thoughtful regulation since day one,” adding the exchange looks forward to “definitively proving this in court.” 

Bitcoin futures contracts began trading on the Cboe Futures Exchange at the end of 2017 based on Gemini’s auction price for bitcoin.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

EtherFi, the largest liquid restaking protocol, is repositioning itself as a consumer-facing crypto neobank. Beyond staking, it is building a revenue mix around cards, vaults, and trading, aiming to capture sustainable front-end economics in DeFi. The shift highlights EtherFi’s ambition to expand from infrastructure into a full financial platform.

article-image

Legion’s reputation-based fundraising will expand through Kraken Launch, offering compliant and transparent token sales to global investors

by Blockworks /
article-image

Blockchain protocol introduces XPL token and zero-fee transfers as it targets global stablecoin adoption

by Blockworks /
article-image

With rate cuts priced in and deeper liquidity, it’s not surprising to see certain speculative assets getting a bid

article-image

Lending giant is moving to ERC‑4626 share accounting and preparing to shutter underperforming networks, with 86% of revenue on Ethereum mainnet

article-image

The payments firm introduces a USDC-based app on Stellar, aiming to modernize remittances in volatile currency markets

by Blockworks /
article-image

MarginFi fixed a flaw that could have let attackers borrow funds without repayment

by Blockworks /