A federal judge has refused to overturn a $5 million settlement between the crypto exchange Gemini and the Commodity Futures Trading Commission, even though both parties jointly sought to vacate it.
In a ruling issued October 15, U.S. District Judge Alvin Hellerstein of the Southern District of New York denied the motion to vacate a consent order that Gemini agreed to in January 2025. Hellerstein found that neither a shift in the CFTC's enforcement priorities under the current administration nor allegations of misconduct inside the agency's enforcement division met the legal threshold to reopen a signed judgment.
"Neither of these two grounds is sufficient to support vacating the settlement," Hellerstein wrote, noting that Gemini had voluntarily signed the deal approximately three weeks before trial.
Origins of the Dispute
The original case dates to 2022, when the CFTC charged Gemini with making false or misleading statements to the agency regarding a proposed Bitcoin futures product. The two sides reached the settlement in early 2025, then jointly moved in May to undo it, arguing the original enforcement effort had violated fair enforcement principles.
What Remains in Place
The ruling leaves intact a permanent injunction barring Gemini from making false or misleading statements to the CFTC and from publicly denying the settlement's findings, though the CFTC has stated it will no longer enforce the restriction on public statements.
Gemini has already paid the $5 million penalty, which will not be refunded. The outcome represents an uncommon instance of a court holding firm while a regulator retreats from its own case.
Regulatory Shift
The case underscores a significant shift in the CFTC's approach to cryptocurrency. The agency has moved to accommodate the industry, issuing no-action relief for crypto apps offering regulated derivatives and proposing federal oversight of crypto exchanges. This softer stance contrasted with the judge's decision to uphold the existing settlement.
Gemini recently won CFTC approval to expand its prediction-market and perpetual-futures offerings.
