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Judge leaves Gemini’s $5 million CFTC settlement in place

A Manhattan judge left Gemini’s $5 million CFTC penalty and injunction in place, rejecting the parties’ bid to undo the 2025 deal and its ongoing limits.

The Splyt Genesis Desk

Judge leaves Gemini’s $5 million CFTC settlement in place

A Manhattan judge rejected the Commodity Futures Trading Commission and Gemini’s joint request to undo the crypto exchange’s $5 million settlement, leaving its consent order in force. Reuters reported that U.S. District Judge Alvin Hellerstein ruled on Oct. 15 that the agency and Gemini had not met the standard for setting the settlement aside.

What did Gemini and the CFTC ask the judge to change?

They asked Hellerstein to vacate the consent order’s remaining, forward-looking terms, including its injunction. The parties said the CFTC’s current enforcement standards and its review of the case made continued enforcement unfair. The agency said its review found serious problems with the investigation and that it would not have filed the case under its current standards.

The request followed a lawsuit the CFTC filed in 2022. It alleged Gemini made false or misleading statements during the agency’s review of a proposed bitcoin futures contract. Gemini agreed to the consent order in January 2025, shortly before trial. The order imposed a $5 million civil penalty and an injunction barring false or misleading statements to the CFTC.

Why did the judge refuse to erase the order?

Hellerstein found that a change in enforcement policy and the CFTC’s later review did not justify reopening the judgment. In the Oct. 15 court order, he noted that Gemini had fought the case for more than three years and chose to settle weeks before trial.

The judge’s decision leaves the order intact even though the regulator joined Gemini in seeking relief. The parties had said the $5 million penalty would not be refunded if the request succeeded. The CFTC’s May announcement said the penalty had already been paid and that the parties sought to lift the remaining prospective terms.

What does the ruling mean for Gemini now?

Gemini remains subject to the consent order, including its injunction, and the $5 million stays paid. The ruling concerns the exchange’s past statements to the CFTC in connection with the proposed bitcoin futures product; it does not undo the settlement or return the penalty.

For you, the next signal to watch is whether Gemini or the CFTC appeals. The ruling announced no appeal, so any next court action would show whether either side continues to challenge the order.

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