Federal Judge Refuses to Cancel Gemini’s $5M CFTC Settlement

US District Judge Alvin Hellerstein on Thursday turned down a joint request from Gemini and the Commodity Futures Trading Commission to undo a $5 million settlement reached in January 2025. The two sides had asked for relief on May 27, after an internal agency review pointed to alleged misconduct by the CFTC’s enforcement division, including leaning on a questionable whistleblower, applying improper regulatory pressure and trying to keep evidence from coming out. The regulator even said it would not bring the case under its current standards, yet the court was not persuaded.

What Stays in Place After the Decision

A permanent injunction still bars Gemini from making false or misleading statements to the CFTC. The deal also stops the exchange from publicly denying its findings, although the regulator said in June it would no longer enforce that part. Gemini has already paid the penalty, and the CFTC earlier said no refund would follow, even if the settlement had been reversed.

Why the Judge Said No

Hellerstein noted that Gemini knew about weaknesses in the CFTC’s case when it chose to settle, less than three weeks before trial. Extra internal documents obtained later did not change his view of a deal the exchange accepted voluntarily. He also found that President Donald Trump’s digital asset executive order and the agency’s new enforcement approach reflected shifts in policy, not a major change in law.

Background on the Bitcoin Auction Case

The case focused on Gemini’s Bitcoin auction. The consent order said the exchange failed to disclose that some customers traded with borrowed funds, that self trading happened despite safeguards and that some traders received special fee deals. It also submitted trading volume data without revealing those practices. Former CFTC Chair Timothy Massad earlier called the move to reverse a settled case “extraordinarily unusual” and said the public deserves a better explanation.