The American regulator is digging under the Winklevoss brothers. It’s all about bitcoin futures

The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against the Gemini cryptocurrency exchange. The civil suit alleges that the Winklevoss brothers’ trading floor made false or misleading statements to the CFTC in 2017 during face-to-face meetings and in documents in violation of the Commodity Exchange Act and other regulations. The reason for the false statements of the representatives of the exchange was the desire to quickly offer bitcoin futures contracts.

Lawsuit against Gemini Trust Co. filed in the Southern District of New York on Thursday

In 2017, the regulator considered whether a proposed Bitcoin futures contract would be subject to manipulation. The proposed bitcoin futures contract would have been one of the first digital asset futures contracts, the lawsuit said: “This bitcoin-based futures contract was of particular importance because it was to be one of the first digital asset futures listed on a specially created contract market, with investors showing great interest in accessing bitcoin through derivatives markets.”

The CFTC said in a statement that the regulator is seeking restitution for illegal gains, monetary fines and injunctions related to trading, and opposition to further violations of the Commodity Exchange Act.

The founders of the cryptocurrency exchange Gemini Cameron and Tyler Winklevoss (Cameron Howard Winklevoss, Tyler Howard Winklevoss) just today announced a reduction in the company’s headcount by 10%. It’s not yet clear how many employees will be made redundant, but according to the LinkedIn page, the company employs more than 1,000 people, so at least 100 people will be laid off.

This is the first layoff in the company since its founding in 2014. The statement said that the staff reduction comes against the backdrop of a bear market and the fall of bitcoin.

Meanwhile, Coinbase is reducing its staff following colleagues

Coinbase (COIN) is another company that has announced layoffs.

In a blog post written by Coinbase HR director L.J. Brock, states that “we are extending our hiring pause for both new and current positions for the foreseeable future, but maintaining a number of accepted offers.” The cuts are “in response to current market conditions and business prioritization efforts,” he wrote.

The cost-cutting measures will see Coinbase drop “a number of accepted offers” for prospects that haven’t started yet and extend the two-week hiring pause “as long as the macro environment requires.” The hiring freeze is a continuation of a plan announced last month. The latest announcement came after a Gemini colleague announced on Thursday that she was laying off 10% of her staff, or roughly 100 people.

Crypto exchanges around the world have felt the market crisis. In recent weeks, Latin America’s top exchange Bitso has laid off 80 employees, Argentina’s Beunbit has almost halved its staff, and Middle East exchange Rain has reportedly laid off “dozens of employees.”

“Swift adoption and action now will help us successfully navigate this macro environment and become even stronger, driving continued healthy growth and innovation,” Coinbase’s Brock wrote.

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