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Judge leaves Gemini’s $5 million CFTC settlement in place

A Manhattan judge left Gemini’s $5 million CFTC settlement and injunction in place, ruling that the agency’s policy reversal did not justify reopening judgment.

The Today Crypto Editors

Judge leaves Gemini’s $5 million CFTC settlement in place

A Manhattan judge on Oct. 15 rejected a joint request from Gemini and the Commodity Futures Trading Commission to vacate a 2025 consent order, leaving the exchange’s $5 million penalty and court restrictions in place. Reuters reported that U.S. District Judge Alvin Hellerstein found the agency and Gemini had not met the legal standard for setting aside the settlement.

The ruling means a regulator’s change in enforcement policy does not, by itself, erase a judgment already agreed to in court.

Why did Gemini and the CFTC ask to undo the order?

The CFTC sued Gemini in 2022 over statements made during its review of a proposed bitcoin futures contract tied to prices from Gemini’s auction. In January 2025, the court entered a consent order requiring Gemini Trust Company to pay $5 million and permanently barring it from making false or misleading statements, or omitting material facts, to the CFTC.

Gemini settled shortly before trial without admitting or denying the allegations. In May 2026, the CFTC joined Gemini in asking the court to lift the order’s prospective provisions, saying a review had led the agency to conclude the case would not have been brought under its current enforcement standards. The parties agreed the penalty would not be refunded.

What did the judge say about changing course?

Hellerstein said the CFTC’s new view of the case did not require the court to vacate the settlement. He also rejected Gemini’s claim that regulators had coerced it into settling, noting that the company had litigated for about three years before choosing to settle shortly before trial.

The judge’s Oct. 15 order leaves the consent order intact. The court did not order a new penalty: Gemini had already paid the $5 million, and the injunction remains in effect.

What changes for Gemini and its users?

For Gemini, the immediate financial cost remains the $5 million already paid. The settlement’s restrictions also remain: the CFTC’s 2025 announcement says the permanent injunction covers false or misleading statements and omissions to the agency.

The case concerns Gemini’s statements during a 2017 review of a proposed futures product, not a new charge or penalty against the exchange. The ruling keeps that prior court order in place despite the CFTC’s reversal, and gives Gemini no refund or release from its terms.

Sources