Gemini Trust Company, led by Cameron and Tyler Winklevoss, has agreed to pay $5 million to settle charges from the U.S. Commodity Futures Trading Commission (CFTC) regarding misleading statements about a bitcoin futures contract they intended to launch in 2017.

As part of the settlement, Gemini acknowledged that it should have known its statements were misleading and failed to disclose beneficial fee arrangements with select market participants.

In addition to the financial penalty, the settlement includes a permanent injunction preventing Gemini from making false or misleading statements to the CFTC in the future.

This case highlights the ongoing scrutiny and regulatory challenges faced by cryptocurrency exchanges like Gemini, which remains a leading player in the industry despite these hurdles.

The settlement, filed in federal court in New York on January 6, 2025, allows Gemini to avoid a trial that was set to begin on January 21, 2025.

The lawsuit is part of broader regulatory actions under President Joe Biden's administration, which has intensified oversight of the cryptocurrency industry.

In addition to the CFTC lawsuit, Gemini is facing legal challenges from the U.S. Securities and Exchange Commission (SEC) related to allegations of raising billions through its Gemini Earn program.

Despite these challenges, Gemini recently secured a license in Singapore to offer cross-border money transfer and digital payment token services, indicating a shift towards more favorable regulations in some regions.

A federal judge had previously delayed the trial start date to January 21, emphasizing that no further delays would be permitted.

A pre-trial conference is scheduled for January 13, 2025, as the legal proceedings continue.

The upcoming inauguration of President-elect Donald Trump raises questions about the future of cryptocurrency regulation in the U.S., with some supporters viewing him as a potential ally for the sector.

The Winklevoss twins have previously donated millions to Trump's campaign, advocating for a shift in crypto regulation under his administration, contrasting with the current regulatory environment under Biden.