Gemini Trust is accusing the Commodity Futures Trading Commission’s (CFTC) enforcement team of pursuing a high-profile lawsuit in 2022 to boost their own careers, rather than serving justice. In a strongly worded letter sent Friday to CFTC Inspector General Christopher Skinner, Gemini alleged that the agency’s Division of Enforcement (DOE) relied on a fabricated whistleblower complaint from a disgraced former employee to file charges.

According to Gemini, the CFTC’s 2022 lawsuit — which claimed the exchange made misleading statements in 2017 regarding a proposed Bitcoin futures contract — was based on a report by Benjamin Small, a former chief operating officer fired after attempting to hide losses from a multi-million dollar rebate fraud. Gemini says Small retaliated by filing a “lie-riddled” whistleblower report suggesting the contract could be manipulated, triggering a multi-year investigation.

The crypto exchange settled the CFTC’s case in January 2024 by paying a $5 million fine without admitting wrongdoing, stating it had “no other choice” at the time. It now claims the entire lawsuit stemmed from a campaign of falsehoods, selectively exploited by enforcement staff for professional gain.

Gemini also accused trading firms like Hashtech LLC and Cardano Singapore of colluding to exploit fee structures, with Small allegedly approving such activities before his termination.

Despite the settlement, Gemini insists the Bitcoin futures contract operated cleanly for over a year and was never manipulated. The firm praised CFTC Acting Chair Caroline Pham for acknowledging questionable enforcement actions and urged a full overhaul of the agency’s enforcement division to prevent future misconduct. Gemini concluded by offering its support to aid in the reform process.