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Former Gemini executives faced criminal investigation in 2022: Report

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  • Gemini’s former executives faced a criminal investigation last year. 
  • The probe was based on a civil case brought by the Commodities and Futures Trading Commission (CFTC).

Two former executives at crypto exchange Gemini were probed as part of a now-closed criminal investigation related to the first US Bitcoin [BTC] futures contract, which was debuted by the exchange. The investigation revolved around the civil case filed against the exchange by the Commodity Futures Trading Commission (CFTC) in June 2022.

Gemini executives’ laptops examined

According to a report by Bloomberg, regulators had accused Gemini of misleading authorities about its ability to prevent manipulation in Bitcoin prices. These prices were used as a reference for the derivatives based on BTC. 

The two former executives, Benjamin Small and Shane Molidor, were subpoenaed by the office of the U.S. Attorney for the Southern District of New York. As part of the criminal probe, their company-issued laptops were handed over to federal prosecutors. Prosecutors returned the laptops to Gemini after a lengthy inquiry, and no criminal charges were filed.

These laptops are now being requested by the CFTC for their civil case against the exchange. As per court filings, one executive, either Small or Molidor,

“Drafted, edited, reviewed and made statements to CFTC staff concerning the bitcoin futures contract.”

Gemini’s lawyer stated that one of the laptops was encrypted, and the password was being sought at press time. 

Benjamin Small, who became a whistleblower after leaving the exchange, sued the Winklevoss twins’ crypto exchange last year, alleging that the company fired him for reporting improper transactions. An arbitrator found the the firm had rightfully fired Small in 2017 for being “grossly negligent” in his duties. This had resulted in significant financial losses for Gemini. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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