Judge Keeps Gemini Settlement Restrictions in Place
Federal judge leaves Gemini settlement intact
U.S. District Judge Alvin K. Hellerstein on October 15 rejected a joint request from Gemini and the Commodity Futures Trading Commission (CFTC) to undo a January 2025 settlement between the two sides.
The ruling keeps in place a permanent court injunction that bars Gemini from making false or misleading statements to the CFTC. The exchange also remains bound by an agreement not to publicly deny the allegations or findings from the original case.
Gemini has already paid the $5 million civil penalty required by the settlement. The judge noted that under the terms of the agreement, the money would not be returned to the exchange.
What Gemini and the CFTC wanted
In May, both sides filed an amended motion asking the court to vacate the consent order under Federal Rule of Civil Procedure 60(b)(5), or alternatively to lift its ongoing provisions under Rule 60(b)(6).
The CFTC argued that a later review had uncovered evidentiary weaknesses and enforcement tactics it said were inappropriate under its current standards. The agency contended the original complaint should not have been filed the way it was.
Why the judge said no
Hellerstein ruled that a shift in the CFTC's enforcement approach — including new policies following President Donald Trump's executive order on digital assets — represented a change in enforcement priorities, not a significant change in law sufficient to reopen the judgment.
The judge also found that internal materials obtained after the settlement concerned facts that already existed when Gemini agreed to settle. Later knowledge of those facts did not establish changed circumstances, and the parties had not shown how the later disclosure prejudiced them, he wrote.
Hellerstein rejected relief under Rule 60(b)(6) as well. Claims involving newly discovered evidence or misconduct belong under other provisions carrying a one-year deadline, he said, and the catchall provision could not be used to bypass that limit.
The judge also rejected the argument that regulatory pressure made Gemini's settlement involuntary, noting that the exchange had legal counsel and expressly agreed to settle voluntarily.
What the original case was about
The original consent order concerned statements and omissions from roughly July through December 2017 during the CFTC's review of a proposed Bitcoin futures contract.
The contract would have settled against a price determined by Gemini's auction, making the auction's susceptibility to manipulation relevant to the regulator's review.
The settlement found misleading statements or omissions concerning trading prefunding, self-trading safeguards, fee rebates, and trading volume. Gemini entered the settlement without admitting or denying the allegations or findings, except as to jurisdiction and venue.
What comes next
Hellerstein directed the clerk to terminate the two motions. He also noted that the CFTC remains free to account for its current policies when deciding whether to seek enforcement of the consent order.
What is confirmed
- The judge rejected the joint bid to vacate or lift the settlement on October 15, 2026.
- The $5 million penalty has already been paid and will not be returned.
- The permanent injunction and restrictions on public denials remain in effect.
- The original case involved statements and omissions from 2017 related to a proposed Bitcoin futures contract settlement mechanism.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.