Gemini slams CFTC over alleged misconduct, calls seven-year probe baseless

The Winklevoss twins-owned crypto exchange Gemini has filed a formal complaint against the Commodity Futures Trading Commission (CFTC), pushing back against a legal battle from 2022.

In a recently submitted 13-page letter to CFTC Inspector General Christopher Skinner, Gemini accused the agency’s enforcement division of waging a years-long “lawfare” campaign driven by litigators’ personal ambition rather than public interest.

The dispute stems from the 2022 lawsuit filed by the CFTC against Gemini. At the time, the agency claimed that the exchange made misleading statements back in 2017 about how its Bitcoin (BTC) auction prices could be manipulated, resulting in a $5 million settlement.

According to Gemini, the CFTC’s case was based on false allegations from a former employee who was on a mission to “destroy” the company and was later found to have lied under oath and committed fraud. The exchange added that despite this, the agency pursued the case for years without producing any evidence of actual wrongdoing or market harm.

“It did not matter that Gemini Trust was, in fact, the victim of fraudulent activity by multiple bad actors or that the claims against it originated with a lie-riddled whistleblower submission by a discredited former employee. The DOE Staff was willing to burn millions of dollars of taxpayer money to sue an innocent party—all because “victory” would serve their personal interests and agenda,” the letter read.

Gemini further argued that the enforcement division strayed from its mission to serve the public’s interest and treat market participants fairly, and instead abused its power. The exchange now calls for internal accountability to straighten out the misconduct, pointing to the calls for reform within the system by the current head of the agency, Caroline Pham.

CFTC Acting Chair calls for better regulatory era

Since taking office, Pham has advocated for a higher standard of oversight in regulating the crypto industry. According to her, the CFTC “must take a forward-looking approach” to address conflicts of interest and gaps left by the previous administration.

Earlier this year, Pham called for a roundtable meeting with industry figures to promote more balanced oversight and constructive dialogue. Her most recent comments came during the Coinbase Annual Summit, where she reiterated the agency’s focus on fair but firm regulations that tackle real concerns.

Caroline Pham has also emphasized that the agency will not overlook misconduct, stressing that both service providers and regulators must operate within the law.