It pours in the financial sector when it rains, and crypto companies are no exception. Gemini, which will lay off 10% of its employees, now faces an investigation by the CFTC. Per the agency, Gemini provided false statements regarding its bitcoin futures self-certification.
Gemini Battles With The CFTC
It is never good when a company is actively investigated by the CFTC or any other regulatory body. For crypto exchange Gemini, that investigation involves the company’s self-certification of a bitcoin futures product. More specifically, the CFTC claims that Gemini misled investors by making misleading statements of material facts or omission of facts. At the time, the CFTC was looking into the feasibility of self-certification of a bitcoin futures contract.
Per the CFTC, statements made by Gemini were misleading regarding “facts relevant to understanding where the Bitcoin Futures Contract would be readily susceptible to manipulation.” Moreover, the watchdog argues that Gemini staff “should have known” these statements were false and misleading. These are very serious accusations that can significantly impact the Gemini trading platform and the broader cryptocurrency industry.
Gemini has issued an explanation, stating:
“We have an eight-year track-record of asking for permission, not forgiveness, and always doing the right thing. We look forward to definitively proving this in court.”
These are troubled times for Gemini, as the company will be forced to lay off 10% of its staff in the coming weeks and months. Like other companies, the exchange suffers from the lasting effects of a “crypto winter”, with dwindling revenue and users. Moreover, Gemini will cut back on certain products and services that are no longer crucial to the company’s long-term vision.