On June 13, 2025, five months after it settled charges that it lied to the CFTC in order to bolster the listing of a bitcoin futures contract, Gemini filed a complaint with the CFTC’s Inspector General under the auspices of raising concerns about the conduct of the Division of Enforcement in prosecuting the false statement case against Gemini. The letter questions the motivations of staff of the Division of Enforcement and seeks to relitigate issues that were resoundingly rejected by Judge Alvin K. Hellerstein of the Southern District of New York. In an article published in Law360 (subscription required) Clark Smith Villazor partner, and former CFTC trial attorney on the Gemini matter, Andrew Rodgers, responds to claims asserted in Gemini’s letter.
Andrew’s statement reads in full:
The Winklevoss twins and Jack Baughman had every opportunity to defend themselves in court. Instead, they signed on to a settlement that presumably they thought was in their best interest and would avoid the embarrassment of trial. Jack Baughman’s letter is a classic case of buyer’s remorse. His claims about the accuracy of my firm bio are also utterly false and I stand by every statement. My only regret is that Gemini settled before a trial, where we would have obtained an even more favorable result for the CFTC and American public.
Gemini’s complaint to the CFTC Inspector General followed a string of losses in federal court that led to the settlement of the case. In particular, Judge Hellerstein ruled on November 18, 2024 that Gemini was liable for its false and misleading statements that sought to satisfy the CFTC’s product listing requirements even though the misstatements were filtered through a CFTC registrant. See Opinion & Order Denying Plaintiff’s Motion for Partial Summary Judgment, Commodity Futures Trading Commission v. Gemini Trust Company, LLC, Case No. 1:22-cv-4563-AKH (S.D.N.Y.), ECF No. 182, 2024 WL 4826992.
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