Judge leaves Gemini’s $5 million CFTC settlement intact

A federal judge in Manhattan denied the Commodity Futures Trading Commission and Gemini’s joint request to vacate a January 2025 consent order, leaving a $5 million penalty and permanent injunction in place, Reuters reported. The order resolved a 2022 CFTC lawsuit over statements Gemini made during the agency’s review of a proposed bitcoin futures contract.

The ruling keeps the settlement’s financial penalty and restrictions in force despite the regulator’s reversal on the case.

Why did the judge reject the request?

Judge Alvin Hellerstein said the arguments did not meet the standard for reopening the judgment. The CFTC and Gemini had argued that new enforcement priorities and the agency’s review of its original case justified relief, but the judge found the facts they cited existed before the settlement.

In the court’s October 15 ruling, Hellerstein said the CFTC’s current view that the case should not have been brought did not itself require vacatur. He also rejected Gemini’s claim that regulatory pressure made its consent involuntary: the exchange had litigated for more than three years and chose to settle shortly before trial.

What does the order still require Gemini to do?

Gemini must still comply with the consent order’s permanent injunction, which bars it from making false or misleading statements or omissions to the CFTC. The company had already paid the $5 million civil penalty; Reuters reported that Gemini agreed not to seek a refund even if the order were vacated.

So the practical outcome is unchanged for Gemini’s balance sheet and its CFTC obligations: the penalty stays paid, and the injunction stays in effect. The court’s ruling also means the agency’s changed assessment of its case does not erase a judgment the parties previously agreed to.

What was the joint motion trying to change?

The CFTC joined Gemini in seeking relief in May 2026. The commission said its review found the complaint should not have been filed under its current enforcement standards, while Gemini argued that it settled under coercive regulatory pressure.

The parties asked the court to remove the consent order’s prospective provisions, including the injunction. The CFTC said the penalty and other provisions had already been satisfied, and the motion stipulated that Gemini would not get the $5 million back. Hellerstein’s denial leaves the original settlement and its ongoing restrictions intact.

Sources

• Reuters reported — investing.com
• court’s October 15 ruling — storage.courtlistener.com