Gemini Proposes $5M Settlement to Resolve CFTC Misconduct Case

Gemini Trust Company may soon resolve its legal dispute with the U.S. Commodity Futures Trading Commission (CFTC) through a proposed settlement.

The deal, outlined in a January 6 court filing, could close the case without a trial if approved by the court. As part of the agreement, Gemini would pay a $5 million fine and acknowledge that it failed to provide accurate information to the regulator.

The dispute stems from accusations made by the CFTC in 2022, claiming that Gemini misrepresented details during its 2017 efforts to introduce Bitcoin futures contracts. The filing revealed that Gemini had undisclosed fee arrangements with certain market participants, offering favorable terms to select traders—details that were not made public on its website. These practices, according to the CFTC, were intended to boost trading activity in Gemini’s auctions.

Under the proposed settlement, Gemini would admit that it should have recognized its statements were misleading. The company would also commit to refraining from providing false or misleading information in the future. If the court approves the deal, it would bring an end to the ongoing legal proceedings, which had been scheduled for trial later this month.

This case is one of several enforcement actions the CFTC has pursued against crypto firms. In its 2024 fiscal year, the agency reported recovering $17 billion from penalties and restitution, much of it linked to digital asset cases. As the regulatory spotlight on cryptocurrencies intensifies, cases like Gemini’s highlight the growing scrutiny on how companies navigate compliance with U.S. commodity laws.

Gemini has yet to publicly comment on the settlement proposal, leaving the court’s decision as the next step in determining the outcome of the case.