A US federal judge in New York, Alvin K. Hellerstein, rejected a joint motion from Gemini Trust Company and the Commodity Futures Trading Commission (CFTC) to vacate a January 2025 consent order. The court ruled that the parties failed to provide sufficient grounds under Federal Rule of Civil Procedure 60 to reopen the settled judgment.
The original 2025 settlement included a $5 million civil penalty, which has already been paid, and a permanent injunction prohibiting Gemini from making false or misleading statements to the CFTC. Both the penalty and the injunction remain in effect following the judge's decision.
The CFTC originally filed the lawsuit in 2022, alleging that Gemini provided false information regarding a Bitcoin futures contract in 2017. Gemini had agreed to the settlement just three weeks before the scheduled trial date.
The request to vacate the order followed an internal CFTC review, which suggested the original complaint should not have been filed. The review cited concerns about the credibility of a whistleblower and shifts in the agency's enforcement priorities regarding digital assets.
Judge Hellerstein determined that these internal policy shifts and reviews did not meet the strict legal requirements for vacating a final judgment. Consequently, the injunction remains binding on Gemini, and the company continues to operate under the terms of the original court order.
