Judge Rejects Joint Request to Overturn Gemini's $5 Million CFTC Settlement
Federal judge upholds Gemini settlement despite CFTC change of heart
A U.S. federal judge has rejected a joint request from crypto exchange Gemini and the Commodity Futures Trading Commission (CFTC) to overturn the exchange's $5 million settlement.
Federal Judge Alvin Hellerstein ruled Thursday that the CFTC's decision to reverse its position on the case was not enough to undo the January 2025 agreement. He also rejected Gemini's argument that regulators had coerced it into settling.
Gemini, founded by Cameron and Tyler Winklevoss, has already paid the $5 million. The ruling keeps the exchange under a court order prohibiting it from misleading the CFTC or publicly denying the settlement's findings.
What the ruling means for Gemini
- Gemini must live with the terms of its 2025 settlement.
- The exchange can still operate in the U.S. and introduce new products.
- A court order remains in place preventing Gemini from misleading the CFTC or denying the settlement's findings.
- The decision shows that a friendlier approach to crypto regulation is not retroactive and does not automatically erase earlier court judgments.
What the CFTC letter says
The CFTC asked the judge to void the settlement, saying the case should never have been brought in the first place. This created an unusual situation where both the regulator and the company agreed the settlement should be undone.
However, Judge Hellerstein determined that the CFTC's changed position did not justify erasing the agreement.
How the case began
The CFTC sued Gemini in 2023, alleging the exchange misled regulators during a 2017 review of a proposed bitcoin futures contract. Gemini settled three weeks before the trial was set to begin, without admitting or denying the allegations.
"Gemini litigated the case for approximately three years, and then, despite the preceding facts, made the calculated decision to settle the case shortly before trial," the judge wrote in his ruling.
Gemini did not respond to a request for comment on Thursday's ruling.
Gemini's broader shifts
Earlier this year, Gemini announced plans to exit the U.K., European Union, and Australia while cutting 25% of its workforce. The company said it would shift resources toward the U.S. market and prediction markets, while continuing to operate in Singapore.
Why this matters for crypto regulation
The case highlights a tension in the current regulatory environment. Even when a regulator and a regulated company agree that a past case was wrongly brought, the courts may still uphold the original settlement. This means companies cannot rely on future regulatory changes to erase previous legal obligations.
What is confirmed
The judge rejected the joint motion to void the settlement. Gemini has paid the $5 million. The court order restricting Gemini from misleading the CFTC remains in effect. The CFTC stated the original case should not have been brought.
What is still unclear
It is not clear whether Gemini will appeal the judge's decision or take any further legal action.
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.
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