Judge Rejects Gemini-CFTC Bid to Void $5 Million Settlement

A U.S. federal judge on Thursday rejected an unusual joint effort by Gemini and the CFTC to void the exchange's $5 million settlement. Judge Alvin Hellerstein ruled that the CFTC's reversal of its position was not sufficient to undo the January 2025 agreement. He also turned down Gemini's contention that regulators had pressured it into settling.

The settlement has already been paid, according to CoinDesk. The ruling leaves Gemini subject to a court order that bars it from misleading the CFTC or publicly disputing the settlement's findings. Gemini has not commented on the Thursday decision, CoinDesk reported.

The case dates to 2023, when the CFTC accused Gemini of misleading regulators during a 2017 review of a proposed bitcoin futures contract. Gemini settled three weeks before trial without admitting or denying the allegations. In his ruling, the judge noted that Gemini had litigated for about three years before making a calculated choice to settle just before trial.

The outcome underscores that a more crypto-friendly stance in Washington is not retroactive, per CoinDesk. A regulator and company agreeing that a case should be withdrawn does not automatically erase earlier court judgments. Gemini can still operate in the U.S. and launch new products, but it must comply with the 2025 settlement terms as it focuses more on the American market.

Earlier this year, Gemini said it would withdraw from the U.K., the European Union and Australia and reduce its workforce by 25% as it redirected resources toward the U.S. and prediction markets. The company said it would keep operating in Singapore. Gemini was founded by Cameron and Tyler Winklevoss.