U.S. judge rejects Gemini’s appeal to void $5 million settlement despite CFTC backing
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Summary
A U.S. federal judge rejected a joint request from crypto exchange Gemini and the Commodity Futures Trading Commission (CFTC) to overturn Gemini’s $5 million settlement. The judge ruled that the CFTC’s changed position on the case, which argued it should not have been brought, did not justify undoing the January 2025 agreement. Gemini’s claim that regulators coerced it into settling was also rejected, and Gemini must comply with a court order prohibiting it from misleading the CFTC or denying the settlement’s findings.
Why it matters
The decision illustrates that shifts to a friendlier crypto regulatory approach in Washington D.C. are not retroactive and do not erase prior court judgments, even when both the regulator and the company agree they should be withdrawn. This ruling impacts Gemini’s operations by maintaining the legal terms of the 2025 settlement as it focuses on expanding its presence in the U.S. market.
Key context
The CFTC sued Gemini in 2023, accusing it of misleading regulators during a 2017 review of a proposed bitcoin futures contract. Gemini settled the case three weeks before trial without admitting or denying the allegations. Earlier in 2024, Gemini announced plans to exit the U.K., European Union, and Australia, reduce its workforce by 25%, and shift focus toward the U.S. and prediction markets, while continuing operations in Singapore.
Key numbers and entities
Gemini, founded by Cameron and Tyler Winklevoss, settled for $5 million in January 2025. The CFTC is the regulatory agency involved. U.S. federal Judge Alvin Hellerstein issued the ruling. Gemini reduced workforce by 25% and exited certain international markets in 2024.
What remains unclear
The source does not specify the detailed reasons behind the CFTC’s change of position on the case, nor does it provide Gemini’s response to the recent ruling. The long-term impact on Gemini’s product offerings and market strategies beyond the settlement terms is also not addressed.