Highlights:
- A New York Judge has announced the postponement of the legal dispute involving the CFTC and Gemini Trust.
- The Judge shifted the court hearing from January 13, 2025, to January 21, 2025.
- The new court appearance date spurred widespread controversies among market participants because of Trump’s possible influence on the final verdict.
On December 30, Alvin Hellerstein, a New York Judge presiding over the Commodity Futures Trading Commission (CFTC) lawsuit against the crypto exchange Gemini Trust, announced that the court has decided to postpone the case’s hearing.
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In the new announcement, the Judge stated that the court appearance previously scheduled for January 13, 2025, will no longer be held. Instead, the trial will begin on January 21 next year. In his words, Alvin noted that the court would not grant any further postponement regarding the case.
Part of the circulating document read:
“The final pre-trial conference earlier scheduled for January 6, 2025, is hereby adjourned to January 13, 2025. The trial previously scheduled to begin on January 13, 2025, is hereby adjourned to January 21, 2025. All pre-trial filings must be submitted to the court by January 10, 2025. Due to the schedules of oncoming trials, no further adjustment will be granted.”
The new announcement did not contain reasons for the case postponement. Therefore, the adjournment has spurred controversy, considering that the court hearing will now happen during Donald Trump’s tenure.
For context, the U.S. president-elect will assume office on January 20. Hence, it is unsurprising that market participants are raising concerns about how his pro-crypto stance will influence the court’s decision.
Crypto in the court, more trial date movements, in CFTC v. Gemini Trust Company, the trial previously scheduled to begin on Jan 13, 2025 is hereby adjourned to Jan 21, no further adjournments will be granted. Inner City Press on the case(s) pic.twitter.com/TzEWE8tnZW
— Inner City Press (@innercitypress) December 30, 2024
Origin of CFTC Lawsuit Against Gemini Trust
The feud between both parties dates back to June 2022. The CFTC accused the crypto exchange of providing the United States regulatory agency with false information when it requested details about its 2017 Bitcoin (BTC) futures contract offer proposal.
Consequently, the CFTC sought punishments ranging from monetary fines to forfeiting yields from ill-gotten profits to prevent similar violations from other crypto platforms. Despite pushing the case for over two years, Gemini has continuously evaded any punishment. Such penalties can only stand after the court’s final verdict.
Implications of the Court Postponement
As stated earlier, the new United States administration would significantly influence the court’s decision on the pending legal dispute. Considering Trump’s pro-crypto stance, which has shown severally even before assuming office, one could assert that the final pronouncement would likely favor the exchange.
Moreover, Rostin Behnam, the present CFTC’s lead tenure, will expire next year. Therefore, like the United States Securities and Exchange Commission (SEC) chairman, Gary Gensler, chances abound that Donald Trump will not want to retain him. Consequently, replacing him will only imply placing someone who shares a similar pro-crypto stance with the incoming U.S. president.
CFTC Secures $17.1 Billion in 2024 Cases
In one of its old publications, Crypto2Community reported that the CFTC has raised about $17.1 billion from several cases in 2024. Notedly, a significant portion of the retrieved fund came from enforcement actions involving crypto platforms. According to the report, only the Future Exchange (FTX) case accounted for about $12.7 billion of the total accumulated funds.
CFTC bags record $17B in 2024 thanks to massive crypto enforcement
The US commodities regulator recovered $12.7 billion in the FTX case, which was the “largest recovery for victims and sanctions in CFTC history.”#Norque #NOQ #Bitcoin #ETH #AI #Blockchain
— NORQUE-NOQ (@NorqueNoq) December 5, 2024
The detailed statistics revealed that financial penalties accounted for $2.6 billion. In addition, ill-gotten profits disgorgement contributed $14.5 billion to the total sum. Meanwhile, within the year, the U.S. regulatory agency filed 58 fresh cases, highlighting concentrated efforts to ensure customers’ valuables protection.
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