Gemini Takes Aim at CFTC Over “Lawfare” Allegations
Gemini, the crypto exchange founded by the Winklevoss twins, isn’t holding back. In a sharply worded complaint filed this month, the company accused the Commodity Futures Trading Commission’s enforcement division of carrying out what it calls a seven-year “lawfare” campaign—one that allegedly prioritized personal career gains over actual consumer protection.
The 13-page letter, sent to the CFTC’s inspector general on June 13, claims enforcement lawyers “selectively and unfairly weaponized” federal law to bring what Gemini describes as shaky false-statement charges. The company argues the whole ordeal was less about upholding the law and more about scoring a “high-profile win” to boost resumes.
A Whistleblower’s Revenge?
At the heart of the dispute is a 2022 CFTC lawsuit accusing Gemini of misleading regulators back in 2017 about its Bitcoin auction pricing model. Those statements mattered because they played a role in Cboe’s launch of the first Bitcoin futures contract, which relied on Gemini’s pricing data. The exchange eventually settled for $5 million earlier this year—without admitting fault.
But Gemini insists the case never should’ve happened. They trace it all back to a whistleblower report filed by Benjamin Small, their former COO, who was fired in 2016. According to the company, Small wasn’t exactly a hero. An arbitrator later found he’d “lied repeatedly” in his whistleblower submission and had been involved in a multimillion-dollar rebate fraud scheme while employed at Gemini.
Small allegedly admitted to wanting to “destroy” the company after his termination. Yet, despite the arbitrator’s findings, the CFTC pressed forward with its case against Gemini while Small could still pocket a $1.5 million whistleblower award.
Questions About Motives—and What Comes Next
Gemini’s complaint doesn’t mince words about the CFTC’s enforcement team. It points out that Andrew Rodgers, the lead prosecutor, left the agency shortly after the settlement to join a private law firm—where his bio now highlights the Gemini case as a career milestone.
There might be some hope for change, though. Acting CFTC Chair Caroline Pham has openly criticized the enforcement division’s culture, calling for reforms. Gemini says it’s “encouraged” by her stance but warns that fixing the problem won’t be quick or easy.
Meanwhile, the exchange is pushing ahead with its own plans. Reports suggest it’s close to securing a license in Malta, which would let it operate across Europe under new EU crypto rules. And with talk of going public, Gemini clearly isn’t slowing down—even as it fights this lingering battle.
Edited by Sebastian Sinclair
