The Commodity Futures Trading Commission sued the crypto company owned by the billionaire Winklevoss brothers, saying it misled regulators as part of an effort to gain approval for bitcoin futures in 2017.
Gemini Trust Co. provided bitcoin pricing to Cboe Global Markets Inc., CBOE 2.08% which launched a bitcoin futures product in December 2017. An auction run by Gemini determined how the bitcoin contract would settle on its final day before expiration, ensuring a tight link between the futures and the market for bitcoin itself.
According to the CFTC, Gemini misled the CFTC about the way the auction worked, including whether traders would have to fully fund their bets or could borrow to do more trading. n.
JEFFREY A NEWMAN, A FORMER PROSECUTOR IS A WHISTLEBLOWER LAWYER WITH THE FIRM NEWMAN & SHAPIRO. HE CAN BE REACHED AT JNEWMAN@NEWMANSHAPIRO.COM OR AT 617-823-3217