Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
In this regard, the CFTC indicates that Gemini provided false information to the regulator about its trading platform a place to buy, sell and store cryptocurrency and auction an auction is a public sale through a bidding process where an asset is sold to the highest bidder. of Bitcoin, in which it omitted information that would clarify whether these products are susceptible to market manipulation.
- CFTC the demand for Gemini for misleading information about Bitcoin.
- He alleges that they gave false information and omitted important details about the product.
- Gemini claims that it acted in accordance with the law.
La Commodity Futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Trading Commission, better known by its acronym in English as the CFTC, filed a lawsuit against the U.S.-based international exchange, Gemini, which is directed by brothers Cameron and Tyler Winklevoss.
CFTC files a claim against exchange Gemini
This was revealed by the CFTC in a statement released today, in which he points out to Gemini by “ false or misleading statements of material fact or omitting statements … to the CFTC in connection with the self-certification of a Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. futures product.”
In this regard, in the communiqué submitted by the CFTC se lee:
“The CFTC seeks disgorgement of ill-gotten gains, civil monetary penalties, injunctions related to registration and trading, and an injunction against further violations of the Commodity Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Act (CEA), according to the charges.”
Charges brought against Gemini
As for the crimes Gemini is charged with, the acting director of the area of Compliance of the CFTC, Gretchen Lowe, comentó:
“Making false or misleading statements to the CFTC in connection with the certification of a futures product undermines the agency’s work to ensure the financial integrity of all transactions subject to the CEA, protect market an area or arena, online or offline, in which commercial dealings are conducted. participants, deter and prevent price manipulation, and promote responsible innovation and fair competition. This enforcement action sends a strong message that the Commission will act to safeguard the integrity of the market oversight process.”
Specifically, the CFTC indicates that Gemini provided information to the regulator about its trading and auction platform for the Bitcoin, but they point out that some of it was false or misleading, as it would have transmitted erroneous data and would have omitted details important to understanding the futures contracts of BTC proposed, in particular by not clarifying whether these could be susceptible to manipulation.
Faced with this complaint from the CFTC, a representative of Gemini clarified that the company has always been at the forefront of regulatory matters from day one, so they have eight years of operating in compliance with existing laws making sure to always do the right thing, so they hope to prove their innocence in court when the time comes.
Particularly difficult time for the market
The measures taken by the CFTC against Gemini come at a time when the crypto market in general is facing a general downturn, which has made its weight felt strongly on the trading performance of the main exponents of the sector.
Analysts and enthusiasts point out that this meets the conditions for qualifying as a “Crypto Winter” This is a season in which the market suffers and present liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. falls significantly. Although this was perfectly expected after the developments seen between 2020 and the beginning of 2022, events such as the economic reforms announced by the FED in the US and the fall of Terra accelerated the process dramatically.
Gemini has not been oblivious to this phenomenon and the fall in the market has also led it to rethink its operations. Just today the exchange announced the layoff of 10% of its workforce as a measure to cope with the effects of the Winter Crypto.
- Gemini, cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchange, lays off 10% of its workers in response to crypto winter
- Mexican crypto exchange Bitso lays off 80 employees
- Argentine exchange Buenbit lays off half of its staff
Version by Angel Di Matteo / DiarioBitcoin
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