A US federal judge, Alvin Hellerstein, has denied a joint motion from Gemini and the Commodity Futures Trading Commission (CFTC) to vacate a $5 million settlement. The agreement, finalized in January 2025, resolved allegations that the exchange provided misleading information regarding its Bitcoin auction operations.
The exchange and the regulator sought to overturn the settlement in May 2026, citing internal misconduct within the CFTC enforcement division. Claims included the use of unreliable whistleblower testimony and the suppression of evidence. However, the judge ruled that Gemini was aware of potential issues when it voluntarily agreed to the settlement shortly before the trial date.
The court also dismissed arguments that shifts in enforcement priorities or the executive order on digital assets from President Donald Trump necessitated a reversal. The judge noted these represent policy changes rather than fundamental shifts in law. Gemini has already paid the $5 million penalty, which the regulator stated would not be refunded.
The original settlement includes a permanent injunction preventing Gemini from making false or misleading statements to the CFTC. While the regulator previously indicated it would no longer enforce a provision prohibiting Gemini from publicly denying the agency's findings, the court ruling maintains the legal standing of the initial consent order.
