Judge rejects joint Gemini and CFTC bid to overturn $5 million settlement
A federal judge in Manhattan has denied a joint motion by cryptocurrency exchange Gemini and the Commodity Futures Trading Commission to vacate a January 2025 consent order and $5 million penalty.
A federal judge has shot down an unusual joint effort by cryptocurrency exchange Gemini and the Commodity Futures Trading Commission to undo a January 2025 consent order. U.S. District Judge Alvin K. Hellerstein of the Southern District of New York denied the joint motion in an eight-page ruling, refusing to lift the court order, its permanent injunction, or Gemini's commitment not to publicly deny the agency's findings.[5][3][2]
The CFTC initially sued Gemini in June 2022, alleging the exchange made false or misleading statements while regulators reviewed a proposed bitcoin futures contract tied to auction prices on Gemini's platform. The parties settled in December 2024, less than three weeks before trial, leading to the consent order entered on Jan. 6, 2025. Gemini has already paid the required $5 million civil penalty.[5][3]
Gemini and the regulator filed together on May 28, 2026, to vacate the settlement. They cited an enforcement policy shift driven by President Donald Trump's January 2025 digital-asset executive order and a subsequent internal agency review. In that review, the CFTC claimed it would not bring the case under current standards and alleged its own staff had acted improperly, in part by relying on an unreliable whistleblower.[5][1]
Judge Hellerstein ruled that regulatory policy shifts and post-settlement regret do not amount to significant changes in facts or law required to reopen a finalized judgment. He emphasized that Gemini voluntarily settled with legal counsel and knew as early as August 2017 of internal misconduct involving its chief operating officer. While denying relief, the judge noted that the CFTC maintains prosecutorial discretion over whether to enforce the order.[5][4]
Key facts
- U.S. District Judge Alvin K. Hellerstein rejected a joint motion by Gemini and the CFTC to vacate a January 2025 consent order.
- Gemini has already paid the $5 million civil penalty required under the consent order.
- The CFTC sued Gemini in June 2022 over allegedly false or misleading statements made during a 2017 review of a proposed bitcoin futures contract.
- Gemini and the CFTC voluntarily settled the dispute in December 2024, less than three weeks before trial.
- The CFTC supported vacating the deal after an internal review concluded staff had used inappropriate tactics and that the agency would not file the lawsuit today.
- The judge ruled that changes in enforcement priorities and newly acquired knowledge do not constitute grounds to overturn a voluntary settlement, though the CFTC retains enforcement discretion.
Sources · 5 sources
- CT
Coin TelegraphArticle ·
Judge rejects CFTC, Gemini bid to undo $5M settlement Judge ruled changes in CFTC enforcement priorities and allegations of misconduct by its enforcement division were insufficient to overturn Gemini’s January 2025 settlement.
Open source - CO
CoindeskArticle ·
U.S. judge rejects Gemini’s appeal to void $5 million settlement despite CFTC backing The crypto exchange already paid up, but a court order and restrictions from its 2025 settlement will not be lifted even though the CFTC said the case should have never been presented.
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: A US federal judge denied a joint CFTC-Gemini motion to vacate a January 2025 consent order imposing a $5 million penalty and permanent injunction on Gemini Trust for false or misleading statements during the 2017 Bitcoin futures review. The court noted that Gemini voluntarily settled three weeks before trial and that policy changes do not warrant reopening the judgment.
Open source - TB
The BlockArticle ·
US federal judge denies joint Gemini-CFTC bid to undo $5 million settlement The court noted that Gemini voluntarily settled three weeks before trial and that policy changes do not warrant reopening the judgment.
Open source - UN
UnchainedArticle ·
Gemini Can’t Shed Its CFTC Consent Order Even With the Agency’s Backing, Judge Rules A federal judge in Manhattan on Thursday refused to vacate Gemini’s 2025 settlement with the Commodity Futures Trading Commission , even though the agency had joined the crypto exchange in asking him to. U.S. District Judge Alvin K. Hellerstein denied the joint motion in an eight-page order, leaving in place the consent order’s injunction and Gemini’s promise not to publicly deny its findings. Gemini has already paid the $5 million civil penalty , the order noted. “The CFTC’s present assessment that this action should not have been brought does not require vacatur or other relief,” Hellerstein wrote in the ruling. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . What the Two Sides Wanted The CFTC sued Gemini in June 2022 , alleging the exchange gave agency staff false or misleading information while they reviewed a proposed bitcoin futures contract that would have settled on an auction price from Gemini’s own platform. The case settled in December 2024, less than three weeks before trial, and the court entered the consent order on Jan. 6, 2025 . On May 28, 2026 , the regulator and Gemini filed together to wipe out the order or, as a fallback, its forward-looking terms. The order says they cited the CFTC’s shift in enforcement policy, which President Donald Trump’s January 2025 executive order on digital assets helped drive, plus a review the agency conducted after the deal. The CFTC said that review showed it wouldn’t bring the case today, and that its staff had acted improperly, partly by relying on a whistleblower it now considers unreliable. Why the Court Said No Hellerstein found that none of it amounted to a significant change in the facts or the law. “Newly acquired knowledge of facts that existed at the time the Consent Order was entered does not constitute a significant change in factual circumstances,” he wrote. He noted that Gemini knew as early as August 2017 that its own chief operating officer and a subordinate had enabled a fraud scheme against it. The company fought the case for about three years and then “made the calculated decision to settle the case shortly before trial,” the judge wrote. Documents Gemini received later “may have caused it to regret that it settled,” he added, but that did not make keeping the order in force unfair. The judge called the executive order, a Justice Department memo titled “Ending Regulation by Prosecution” and the agency’s new approach “a change in enforcement priorities and policies,” rather than a change in the law. He also rejected the argument that regulatory pressure made Gemini’s consent involuntary, noting the company had lawyers and settled by choice. The ruling leaves one door open: the CFTC “retains discretion over its enforcement priorities” and can weigh its current policies when deciding whether to enforce the order at all, Hellerstein wrote in the order. Related Listen: The Defense Firm That Hates the Government: How Nader Got Dismissed The post Gemini Can’t Shed Its CFTC Consent Order Even With the Agency’s Backing, Judge Rules appeared first on Unchained .
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