On October 15, 2026, U.S. District Judge Alvin Hellerstein rejected a joint request from the Commodity Futures Trading Commission (CFTC) and cryptocurrency exchange Gemini to undo their $5 million settlement, leaving the penalty and permanent injunction intact despite both parties seeking to erase the agreement.
The case originated from Gemini's involvement in a proposed bitcoin futures contract in 2017. The CFTC alleged the exchange misled regulators about trading safeguards, customer financing, special fee arrangements, and market activity that could influence the contract's pricing. The agency filed suit in June 2022, and Gemini settled in January 2025 without admitting or denying the allegations. The settlement included a $5 million penalty and a permanent injunction prohibiting the exchange from misleading the CFTC.
In May 2026, the CFTC reversed its position following an internal review. The agency concluded the lawsuit should never have been filed, citing concerns about whistleblower credibility, questionable evidence, and its own enforcement practices. Gemini simultaneously sought to overturn the settlement, arguing that mounting legal expenses and the approaching trial had pressured it into settling. The company even offered to allow the government to keep the $5 million if the order was vacated.
Judge Hellerstein ruled that most concerns raised by the CFTC involved circumstances existing before the settlement was reached. He noted that Gemini had voluntarily accepted the agreement after years of litigation. The judge also determined that changing enforcement priorities under a new administration did not justify undoing a binding court order.
The ruling leaves Gemini subject to the original injunction, though the CFTC retains discretion over its enforcement. Neither the regulatory agency nor the exchange succeeded in erasing the settlement despite their unified request.
