By Matthew Russell Lee, Patreon Maxwell book
SDNY COURTHOUSE, Feb 13 – The Commodities Futures Trading Commission sued Gemini for false statements in its self-certification to sell bitcoin futures contacts. Now there are discovery disputes. On February 13, 2023 U.S. District Court for the Southern District of New York Judge Alvin K. Hellerstein held a discovery proceeding. Inner City Press went and covered it. Thread here:
OK- in crypto case of CFTC v Gemini, discovery demand by Gemini on whether its (false) statements to CFTC were material. US v Nedder cited.
CFTC counsel: There were statements both written and oral by Gemini. Judge: I may also discovery on the oral statements, if they say they were influenced. CFTC: It's hard to parse. Judge: No it's not.
Gemini's lawyer: They have to produce evidence. Materiality is a mixed question of law and fact- Judge: The Supreme Court has said that, yes. But I'm not sure of the application. CFTC cites US v Gaudin 515 US 506.
Gemini's lawyer: Respectfully, the Court is denying Gemini a right to defend itself- Judge: Maybe you don't have a defense
Gemini's lawyer: THis is a jury trial- Judge: I know you've asked for one. But if there are no question of fact, maybe no jury trial.
Now CFTC asks for and gets 3 week to get Commission approval to invoke privilege. Gemini's lawyer Levin: Let's talk search terms. Judge: Having in mind my holdings on materiality, how many would you still pursue?
Levin: We need a search term hit report Judge: It's hearsay. Gemini's lawyer: What? Judge: Ever heard of hearsay?
CFTC: Their statement that it was a pre-funded exchange was misleading. Gemini's lawyer: We need the universe of documents- Judge: Only if they are relevant to the case.
The CFTC then spoke of seeking the laptops of two witnesses, one of whom it called a whistleblower and declined to name (while saying the defendant has published his same). The CFTC said that one of Gemini's lawyers had offered the witness a financial settlement, if he signed an affidavit. This was gingerly described as possible witness tampering - whereupon Judge Hellerstein said, that is not before me, you are not seeking to recuse defense counsel.
More / extra on Patreon here
March 10 conference is proposed. Gemini's lawyer: My wife booked a vacation for that week. Could we choose another day so I don't need a lawyer for another purpose? March 22 at noon.
The case is Commodity Futures Trading Commission v. Gemini Trust Company, LLC, 22-cv-4563 (Hellerstein)
***
Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.
Feedback: Editorial [at] innercitypress.com
