The Commodity Futures Trading Commission (CFTC) has requested a New York federal court to vacate a consent order against Gemini Trust, a cryptocurrency exchange founded by the Winklevoss twins. Tim Massad, a former CFTC chair, described this move as "very unusual" during an interview on CNBC's "Squawk on the Street". He noted that he was unaware of the specific details of the case, which occurred after his tenure, but emphasized that the CFTC typically only pursued strong cases.
The consent order, issued in January 2025, included a $5 million penalty and an injunction against making false statements to the agency. This order was established during the final weeks of President Biden's administration, related to false statements made by Gemini in 2017 regarding a bitcoin futures contract.
Currently, the CFTC is led by Michael Selig, appointed by President Trump, whose campaign received donations from the Winklevoss twins. Massad remarked on the professionalism and integrity of the CFTC's enforcement division during his time.
Avi Perry, an attorney for Gemini, stated that the case should not have been initiated and expressed gratitude for the CFTC's decision to seek a withdrawal of the consent order. The CFTC explained that after a comprehensive review, it concluded that the complaint should not have been filed under current enforcement standards. The agency indicated that continuing enforcement of the consent order's provisions would not serve its mission or the public interest.
