CFTC bid to vacate order against Winklevoss’ crypto exchange ‘very unusual,’ ex-agency chief says

The move by the Commodity Futures Trading Commission to vacate a consent order against the cryptocurrency exchange company Gemini Trust is “very unusual,” a former CFTC chair told CNBC’s “Squawk on the Street” on Thursday.

Tim Massad, the former chair, also said he did not know details of the CFTC’s case against Gemini, which was founded by the Winklevoss twins, because it came after his tenure at the agency, but noted that during his tenure the CFTC’s staff “only brought cases that were strong.”

The CFTC on Wednesday asked a New York federal court judge to vacate the January 2025 order against Gemini, which included a $5 million penalty and an injunction that barred the company from making false statements to the agency. The order was implemented in the final weeks of President Joe Biden’s administration.

The CFTC is now run by Michael Selig, an appointee of President Donald Trump, whose 2024 election campaign received donations from the twins, Tyler and Cameron Winklevoss.

“What I will say is that it’s very unusual for the CFTC to do this, to basically seek to vacate the judgment in a case that you brought,” Massad told CNBC.

“And the second thing I would say is, in my experience, the CFTC enforcement division was very professional and acted with integrity and care,” he said.

“There were a lot of people who were terrific public servants who made decisions based on the law and the facts, and they only brought cases that were strong on the merits.”

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