Commodities regulator alleges Winklevoss' Gemini crypto exchange was politically targeted

The chairman of the Commodity Futures Trading Commission (CFTC) recently announced efforts to amend what he describes as a flawed enforcement action against Gemini, the cryptocurrency exchange founded by the Winklevoss twins. During a CNBC 'Squawk Box' interview, Michael Selig expressed concerns that the exchange has been caught in a wider campaign targeting the crypto industry, allegedly instigated by the Biden administration. Selig stated, "The Biden administration weaponized the federal agencies against the crypto industry and many other sectors. They politically targeted individuals like the Winklevoss twins, which is unacceptable. We are here to correct those injustices and start anew. The agency must not be used as a tool for political warfare." While he refrained from discussing specifics due to ongoing litigation, Selig emphasized the importance of reversing any politically motivated actions against individuals or companies in the crypto sector. He assured that such actions would not recur during his tenure or any future administration. These remarks follow the CFTC's recent request to a federal judge in New York to vacate a January 2025 ruling against Gemini, which included a $5 million penalty and an injunction prohibiting the company from providing false information to regulatory bodies. This order was issued in the closing days of the Biden administration and has been labeled "very unusual" by former CFTC chair Tim Massad. The case dates back to 2022 when the CFTC filed a lawsuit against Gemini, claiming that the exchange made misleading statements to regulators in 2017 while seeking approval for a bitcoin futures product. It alleged that Gemini misrepresented the vulnerability of the bitcoin futures contract to market manipulation. Notably, Tyler and Cameron Winklevoss have been significant contributors to Donald Trump's 2024 presidential campaign. As of now, neither the Winklevoss brothers nor representatives from the Biden administration have responded to requests for comments from CNBC.