U.S. District Judge Alvin Hellerstein has rejected a joint request from Gemini and the Commodity Futures Trading Commission (CFTC) to vacate a $5 million settlement. The court ruling, issued on October 15, maintains the consent order finalized in January 2025 regarding allegations of misleading statements made by the exchange to the regulator.
The dispute originated in 2022 when the CFTC accused Gemini of providing false information concerning a proposed Bitcoin futures product. Although both parties sought to undo the agreement in May 2025, citing shifts in enforcement priorities and internal misconduct allegations, the judge determined these reasons were legally insufficient to reopen a signed judgment.
The court decision keeps in place a permanent injunction that prohibits Gemini from making misleading statements to the CFTC or publicly denying the findings of the settlement. While the agency previously indicated it would not enforce the gag-style provision, the legal obligation remains active following the judge's refusal to rewrite the closed deal.
Gemini has already paid the $5 million penalty, and the funds will remain with the government regardless of the motion's outcome. This ruling occurs as Gemini expands its regulated business, having recently secured approval from the CFTC to broaden its offerings in prediction markets and perpetual futures.
