According to the letter, which was sent to CFTC by the Gemini lawyer Jack Baughman, the agency began the court pursuit of the exchange in connection with the launch of a futures product for Bitcoin in 2017. The department claimed that Gemini provided an inaccurate and misleading information about its measures to prevent manipulations with a bitcoin course. Boman called this investigation unfair and offensive to the exchange, since it was based only on the testimony of the former Gemini operating room Benjamin Small. In 2017, Small reported in CFTC about the alleged violations in Gemini, claiming that the exchange mislead the regulator regarding its futures product on bitcoin, launched together with CBOE Global Markets.
The Gemini leadership claims that Small was dismissed for negligence when chickening the discount program, due to which the exchange suffered losses of $ 7 million. Small tried to “expose” the exchange out of revenge, insists the Gemini lawyer. However, CFTC immediately and unconditionally believed Small’s words and began an investigation against the exchange, which stretched for several years.
The lawyer accused the employees of the law enforcement department of CFTC of being more interested in high -profile headings in the media than in the fair application of the law. The department ignored numerous evidence in favor of Gemini, contrary to the charges. Boman noted that with its actions CFTC caused serious economic damage to the country, not only inhibiting innovation, but also wasting taxpayer money. The case ended that in January of this year, Gemini settled the regulator’s claims, paying a fine worth $ 5 million without recognizing the offense.
“There were no injured investors. No one suffered financial losses. There were no failures in the market. This is just a long -term persecution of the company financed by taxpayers, although the exchange has not done anything illegal, ”Boman wrote.
Recently, the acting chairman of CFTC, Caroline Pham said that the regulator would tightly control the cryptocurrency market to stop fraud with digital assets. However, FAM admitted that now it is already impossible to ban cryptocurrencies.
Source: Bits
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