A federal judge rejected an unusual joint request from crypto exchange Gemini and the Commodity Futures Trading Commission (CFTC) to overturn a $5 million settlement, even though the regulator said the case should not have been brought.
Federal Judge Alvin Hellerstein ruled that the CFTC's decision to reverse its position on the case was not enough to undo Gemini's January 2025 settlement. He also rejected Gemini's argument that it had been coerced into settling by regulators.
Gemini, founded by Cameron and Tyler Winklevoss, has already paid the $5 million. The ruling keeps the exchange under a court order prohibiting it from misleading the CFTC or publicly denying the settlement's findings.
Implications for Crypto Regulation
The decision signals that a friendlier approach to crypto regulation does not automatically erase earlier court judgments, even when the regulator and company agree they should be withdrawn.
Gemini can still operate in the U.S. and introduce new products, but must abide by the terms of its 2025 settlement as it shifts its business toward the American market.
Background
The CFTC sued Gemini in 2023, alleging it misled regulators during a 2017 review of a proposed bitcoin futures contract. Gemini settled three weeks before trial without admitting or denying the allegations.
Earlier this year, Gemini announced plans to exit the U.K., European Union, and Australia while cutting 25% of its workforce as it refocused on the U.S. market and prediction markets. The company said it would continue operating in Singapore.
