TLDR
- Gemini stated it had no choice but to settle with the CFTC despite denying the charges.
- The exchange accused CFTC enforcement staff of pursuing the case for personal career advancement.
- Gemini claimed the lawsuit was based on a false whistleblower report from a former executive.
- The company alleged the whistleblower acted out of revenge after being fired for misconduct.
- Gemini maintained its Bitcoin futures contract operated without any signs of manipulation.
Gemini has accused the Commodity Futures Trading Commission’s enforcement staff of pursuing baseless charges for personal advancement. The exchange stated it settled with the agency in January 2025 only because it had no other viable option. Gemini made these claims in a letter to the CFTC’s Inspector General, seeking a review of the enforcement process.
The CFTC originally filed its complaint in June 2022, citing misleading statements from 2017 about Gemini’s Bitcoin futures contract. Gemini has now stated that these claims were based on a discredited whistleblower report filed by a former employee. According to the company, this individual had personal motives stemming from his dismissal from the exchange.
Gemini emphasized that the whistleblower submission led to an extensive investigation starting in 2018. The firm maintained that its Bitcoin futures contract ran without issue for 19 months. Throughout this time, no manipulation claims were raised, supporting Gemini’s argument against the CFTC’s allegations.
Gemini Claims Whistleblower Acted With Personal Motive
Gemini has identified former operating chief Benjamin Small as the whistleblower behind the CFTC’s charges. According to the exchange, Small submitted a report shortly after being fired for misconduct involving rebate fraud. Gemini alleged that he orchestrated a fraudulent rebate scheme that led to financial losses.
The exchange claimed the fraud involved third-party companies, including Hashtech LLC and Cardano Singapore PTE Ltd. Gemini stated these firms abused special fee structures to earn improper rebates. The exchange further claimed that Small approved these arrangements, which prompted his dismissal.
Gemini maintained that Small’s termination triggered his retaliatory actions against the company. The letter stated that his report to the CFTC was filled with falsehoods. It also accused the Division of Enforcement of accepting his claims without proper scrutiny.
Gemini argued that the CFTC’s Division of Enforcement acted recklessly in initiating the case. The exchange accused staffers of using their authority to secure a career win. Gemini said the legal team misused the Commodity Exchange Act to justify the lawsuit.
The letter to Inspector General Christopher Skinner called the claims against Gemini “dubious” and unsupported by evidence. The exchange said the charges resulted from selective interpretation of facts. Gemini highlighted that it had no option but to settle for $5 million.
The company further stated that it did not admit or deny the CFTC’s findings during the settlement. Gemini affirmed its willingness to support internal reforms within the agency. It also praised the CFTC’s acting chair for addressing concerns around questionable enforcement practices.
Firm Welcomes CFTC Steps Toward Reform
Gemini welcomed the steps taken by CFTC acting chair Caroline Pham to reform the Division of Enforcement. The exchange noted her recent statement acknowledging problematic enforcement actions within the agency. Gemini expressed hope that such reforms would prevent future misconduct.
The firm said the agency must engage in serious introspection to restore credibility. It emphasized the importance of long-term commitment to fair regulatory practices. Gemini also confirmed its readiness to assist in any review or internal improvement effort.
