by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Dec 11 – In a civil cryptocurrency enforcement action, the Commodities Futures Trading Commission announced in mid 2022 it had filed a complaint in the U.S. District Court for the Southern District of New York against Gemini Trust Company, LLC for "making false or misleading statements of material facts or omitting to state material facts to the CFTC in connection with the self-certification of a bitcoin futures product."
On December 11, 2023 before SDNY Judge Alvin K. Hellerstein, there were oral arguments on motions to compel and other topics. Inner City Press was there, thread:
Three defense lawyers, more from CFTC Gemini lawyer: We asked CFTC to identify any false or misleading statement- CFTC: We're covered by the deliberative process. Judge: Gemini has a right to know what you think was false, but not how you decided that.
Gemini lawyer: We asked at the deposition, what did you find false-- Judge: You have no right to know what the individual thought, only what the CFTC decided.
CFTC lawyer: The statements they made were half truths. Judge: All you need is the answer to an interrogatory, or two: what and why.
Gemini lawyer: We could propound those Judge: These witnesses will not be asked for their subjective opinions. Gemini lawyer: How many depositions do we get?
Judge: 1500 if you want. But don't use them. What's the CFTC motion - moot, isn't it?
2d Gemini lawyer: We need 30(b)(6) depositions. CFTC lawyer: If we didn't follow up, it doesn't matter. It's just about if their statement was misleading. See the Scali case in SDNY.
Judge: Who wrote that? CFTC lawyer: I don't have that. Judge: I'll reserve on that. Gemini lawyer: We'd like this to be under seal. Judge: Too many people in the room Gemini lawyer: We shared confidential info with others and they got it
CFTC lawyer: Law enforcement privilege Judge: Sustained.
More on Substack here
The case is Commodities Futures Trading Commission v. Gemini Trust Company, LLC, 22-cv-4563 (Hellerstein)
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