Crypto exchange Gemini Trust, led by the Winklevoss twins, has filed a strong complaint against the Commodity Futures Trading Commission (CFTC), alleging that the Enforcement Division of the agency has been misusing its authority for the previous seven years.
Gemini Filing
In the filing, Gemini says that instead of going after actual bad actors, the CFTC wrongly targeted them. The complaint claims the agency built its case using false statements from a discredited former employee and has no real evidence of any intentional wrongdoing by Gemini.
Gemini describes the CFTC’s internal culture as “toxic.” The filing also said, “Lawyers were driven by a selfish desire to advance their careers by misusing their offices to obtain a high-profile ‘win’ against Gemini Trust.”
The exchange argues that the CFTC’s lawyers misused a key law, Section 6(c)(2) of the Commodity Exchange Act, to file unfair charges. They also accuse the legal team of violating due process, damaging Gemini’s reputation, and wasting taxpayer money on a weak case.
Gemini says its case isn’t a one-time issue but part of a bigger problem inside the CFTC. They point to public comments by Acting Chair Caroline Pham, who also called for major reforms, to show that the agency has ongoing internal issues.
In the filing to Inspector General Christopher Skinner, Gemini lists several CFTC staff members by name and blames them for pushing forward a biased and unfair legal campaign.
