Gemini Trust Co., the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has agreed to pay $5 million to settle allegations brought by the Commodity Futures Trading Commission (CFTC) that the company misled regulators in its bid to launch the first US-regulated Bitcoin futures contract. 

The settlement was revealed in a joint court filing on Monday, avoiding a trial scheduled to begin January 21, 2025.

The CFTC sued Gemini in 2022 in the US District Court for the Southern District of New York, alleging that the exchange made "false and misleading statements" about its efforts to prevent manipulation in Bitcoin prices, which were to serve as a reference for derivatives based on the cryptocurrency.

 According to the complaint, these statements were part of Gemini's application process to gain approval for the Bitcoin futures contract. Gemini settled the civil case without admitting or denying the allegations, as is common in regulatory settlements. 

A Controversial Chapter in Crypto Regulation

According to Bloomberg, the allegations against Gemini stem from events dating back to 2017 and 2018 when the company was attempting to pioneer regulated Bitcoin futures in the US market. During this time, Gemini provided subpoenaed laptops from two former executives concerning a related criminal investigation. That probe, however, was closed without any charges being filed.

The timing of the settlement comes amid a politically charged atmosphere in the cryptocurrency sector. Donald Trump, who is set to be inaugurated for his second term as US president on January 20, 2025, has been seen by many in the crypto community as potentially more favorable to industry-friendly regulation.