The U.S. Futures Trading Commission (CFTC) has sued Gemini cryptocurrency exchange. The lawsuit alleges that the company “misled the regulator by answering questions about a futures contract pegged to the bitcoin price on the Gemini platform,” according to Bloomberg.

According to the agency, the case was filed in federal court in Manhattan. According to the document, during meetings with CFTC employees in July-December 2017, company representatives “made false and misleading statements” about the activities of the Gemini Bitcoin Auction platform and product.

“This bitcoin-based futures contract was particularly important as it will be one of the first digital asset futures listed in a purpose-built contract market at a time when investors are showing great interest in accessing bitcoin via derivatives markets.” He’s writing in the CFTC case.

The Gemini Bitcoin Auction pricing mechanism was used on Chicago Board Options Exchange (CBOE) Bitcoin futures contracts when the product was launched in 2017.

In 2019, under the conditions of a bear market and competition with the CME, the exchange delisted this instrument.

Recall that in May 2022, CFTC Commissioner Caroline Pham compared cryptocurrencies to lottery tickets.