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 agreement, originally signed in January 2025, resolved charges from 2022 regarding misleading statements made by the exchange to the regulator concerning a Bitcoin futures product.
The court ruled that neither a change in the CFTC's enforcement priorities nor internal allegations of misconduct within the agency provided sufficient legal grounds to reopen the case. Judge Hellerstein emphasized that Gemini had voluntarily entered into the settlement agreement just three weeks before the scheduled trial date.
The ruling maintains a permanent injunction that prohibits Gemini from making false statements to the CFTC and from publicly denying the findings of the settlement. Although the agency previously indicated it would not enforce the gag-style provision, the court's decision ensures the legal judgment remains in effect.
Gemini has already paid the $5 million penalty, and the court confirmed that these funds will remain with the government regardless of the motion's outcome. This decision comes as Gemini seeks to expand its regulated offerings, including recent approvals to broaden its prediction-market and perpetual-futures products.
