Gemini Fires Back at CFTC: "Years of Lawfare" Over False Claims

Hold onto your hats, folks! The Winklevoss twins' crypto powerhouse, Gemini, isn't taking the Commodity Futures Trading Commission's (CFTC) legal punches lying down. They've just slammed the CFTC with a fiery 13-page complaint, claiming the agency's been on a relentless "lawfare" rampage since 2022, all fueled by personal ambition rather than protecting the public.

In this no-holds-barred letter to CFTC Inspector General Christopher Skinner, Gemini pulls no punches, accusing the enforcement division of waging a war driven by litigators' personal agendas rather than the greater good.

This whole saga kicked off with a CFTC lawsuit back in 2022, where the agency claimed Gemini was pulling a fast one with misleading statements about Bitcoin (BTC) auction prices back in 2017. They slapped Gemini with a $5 million fine, but Gemini's not backing down.

According to Gemini, the CFTC's case was built on a house of cards, relying on false allegations from a disgruntled ex-employee hell-bent on bringing the company down. Gemini's calling out the agency for chasing this case for years without a shred of evidence of actual wrongdoing or market harm.

Gemini's letter is scorching: "It didn't matter that Gemini Trust was the real victim here, targeted by multiple bad actors and a lie-riddled whistleblower submission from a discredited former employee. The DOE Staff was ready to burn through millions in taxpayer money to take down an innocent party—all to serve their own interests and agendas."

Gemini's not stopping there. They're calling out the enforcement division for straying from its mission to serve the public and treat market players fairly. They're demanding internal accountability to clean up this mess, pointing to calls for reform from none other than the current head of the agency, Caroline Pham.

CFTC Acting Chair Calls for a New Era of Regulation

Since stepping into her role, Pham's been pushing for a whole new level of oversight in the wild world of crypto. She's all about taking a forward-looking approach to tackle conflicts of interest and fill the gaps left by the last administration.

Earlier this year, Pham was all about bringing industry leaders to the table for a roundtable, aiming for more balanced oversight and some real talk. Her latest comments at the Coinbase Annual Summit? She's doubling down on the agency's commitment to fair but firm regulations that address the real issues.

Pham's not pulling any punches either—she's made it crystal clear that the agency won't turn a blind eye to misconduct. Both service providers and regulators need to play by the rules, no exceptions.