Judge Rejects CFTC, Gemini Bid to Vacate $5 Million Settlement

3-line summary

• Manhattan federal Judge Alvin Hellerstein rejected a joint request by the CFTC and crypto exchange Gemini to vacate a $5 million settlement and the court order underlying it, Reuters reported October 16. The CFTC had sued Gemini in 2022 over allegedly false or misleading statements made during review of a bitcoin futures product.
• Both parties argued the case would not have been brought under the Trump administration's new enforcement policies and standards, and said the CFTC's false-statement allegations against Gemini had been inappropriate, with the CFTC accused of using 'inappropriate tactics' during litigation; Gemini agreed it would not seek a refund of the $5 million penalty even if the settlement were vacated.
• Hellerstein ruled that the CFTC and Gemini had not met the standard required to vacate a settlement, noting Gemini had voluntarily settled after more than three years of litigation with the CFTC, and that the CFTC's current stance on the case alone was not sufficient grounds to undo it. Context: the settlement was reached in January 2025, in the final days of the Biden administration, shortly before trial was set to begin; the Trump administration has taken a comparatively more lenient, narrower approach to crypto-sector enforcement. Gemini was founded by twins Cameron and Tyler Winklevoss.

This summary is our own processing of the source article; see the source link below for full context.