Well, here’s a juicy one! Crypto exchange Gemini, founded by the Winklevoss twins, is not mincing words. They've filed a fiery complaint against the Commodity Futures Trading Commission (CFTC), accusing the agency’s enforcement division of running a vindictive seven-year "lawfare" campaign against them. And by the sounds of it, the whole thing seems more about career advancement than protecting consumers. Classic case of power trip, huh?

In their 13-page letter to CFTC Inspector General Christopher Skinner, filed on June 13, Gemini’s lawyers didn’t hold back. They claim that CFTC enforcement lawyers “selectively and unfairly weaponized” federal law to bring “dubious false statements charges” against the exchange. Why? According to Gemini, these lawyers were too busy chasing a high-profile “win” against them, all while burning millions of taxpayer dollars in the process.

It all started with a 2022 CFTC lawsuit accusing Gemini of making false or misleading statements back in 2017 about its Bitcoin auction pricing mechanism and whether it was susceptible to manipulation. These statements were crucial in helping Cboe launch the very first Bitcoin futures contract, which used Gemini's prices to determine settlement values. Gemini eventually paid a $5 million fine in January to settle the case, but of course, they didn’t admit any wrongdoing. Classic move.

But here's where it gets spicy. The root of it all, according to Gemini, was a "lie-riddled whistleblower submission" from a disgruntled former employee, Benjamin Small. He apparently got fired after being involved in a $7.45 million rebate fraud scheme and then decided to take down the company with him. Gemini even points to a 2022 arbitrator ruling that declared Small had "fraudulently procured his employment," "lied repeatedly," and made false statements in his whistleblower submission. Yet, despite this, the CFTC enforcement division just kept going after Gemini while giving Small a potential $1.5 million whistleblower award. Go figure.

And the plot thickens: after the settlement, the lead prosecutor in the case, Andrew Rodgers, left the CFTC to join a private law firm. Now, his bio touts the Gemini case as one of the "agency’s most high-profile matters." Convenient, right?

Gemini’s complaint also touches on the CFTC enforcement division’s “toxic culture,” which has been publicly criticized by Acting CFTC Chair Caroline Pham. The exchange says they’re hopeful about Pham’s reform efforts, but let’s be honest, fixing a culture like that probably won’t be a walk in the park. It’ll take some serious reflection and a long-term commitment to change.

Oh, and as if that wasn’t enough, Gemini is still pressing forward with its ambitious plans to go public and has reportedly made strides toward securing a Malta license to operate across Europe under the new EU crypto regulations. So while the CFTC might still be chasing ghosts, Gemini’s eyes are firmly set on expansion. Talk about playing the long game!

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