The US District Court for the Southern District of New York has denied a joint request from the Commodity Futures Trading Commission (CFTC) and Gemini to vacate a January 2025 settlement agreement. Judge Alvin Hellerstein ruled that the arguments presented were insufficient to overturn the previous decision.
The original 2022 lawsuit alleged that the crypto exchange provided misleading information during its 2017 application for bitcoin futures. Under the 2025 settlement, Gemini paid a $5 million fine and accepted a permanent injunction against providing false information to the regulator.
In May 2026, the CFTC admitted the initial case was unfounded, citing improper investigation methods, the use of an unreliable informant, and the withholding of evidence. Despite the regulator acknowledging that it would not have pursued the case under current standards, the judge maintained that these factors do not justify vacating the agreement.
Judge Hellerstein noted that Gemini voluntarily entered the settlement after three years of proceedings. He further stated that the exchange was aware of internal fraud involving its former chief operating officer before signing the deal, and that shifts in regulatory policy are not grounds for reversal.
