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[BUSINESS] · United States · 8 sources

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Gemini and CFTC fail to overturn $5 million settlement

Gemini Trust CFTC cryptocurrency regulation federal court ruling settlement enforcement

A U.S. federal judge has rejected a joint request from cryptocurrency exchange Gemini Trust and the Commodity Futures Trading Commission (CFTC) to overturn a $5 million settlement agreement.

U.S. District Judge Alvin Hellerstein ruled that the arguments presented by both parties did not provide sufficient legal grounds to reverse the judgment. The decision maintains the $5 million penalty, which Gemini has already paid, and upholds a permanent injunction that prohibits the exchange from making false or misleading statements to the federal regulator.

The request for relief followed a shift in the CFTC's stance; the agency had concluded that its original 2023 lawsuit against Gemini—which involved allegations of misleading information regarding bitcoin futures contracts—did not meet its current enforcement standards. Despite this change in regulatory sentiment and the joint motion by both the company and the regulator to undo the January 2025 agreement, the court determined that the voluntary settlement remains binding.

Entities

Alvin Hellerstein · Commodity Futures Trading Commission · Gemini Trust Co. · New York

Claims

What the coverage asserts, and how many sources carry each claim.

  • [● 3 SOURCES] The CFTC concluded its original lawsuit against Gemini should not have been brought under its current enforcement standards. mycryptoparadise.com · osnews.pl
  • [● 3 SOURCES] Judge Alvin Hellerstein rejected the joint request by Gemini and the CFTC to overturn their settlement. mycryptoparadise.com · osnews.pl
  • [○ 1 SOURCE] The CFTC originally sued Gemini in 2023 regarding misleading information provided during a 2017 investigation into bitcoin futures contracts. osnews.pl
  • [● 3 SOURCES] Gemini has already paid a $5 million penalty. mycryptoparadise.com · osnews.pl
  • [● 3 SOURCES] A permanent injunction remains in place, prohibiting Gemini from making false or misleading statements to the regulator. mycryptoparadise.com · osnews.pl
  • [● 3 SOURCES] The settlement was originally reached in January 2025. mycryptoparadise.com · osnews.pl

Sources

Gemini Loses $5 Million Court Battle as Judge Rejects CFTC's Attempt to Reverse Its Own Lawsuit [coinpaper.com]
Judge Denies CFTC Challenge in Gemini Bid to Reverse $5M Settlement [www.cryptobreaking.com]
The CFTC changed its mind on Gemini. The judge did not. [crypto.news]
Sędzia odrzucił wniosek Gemini o unieważnienie ugody na 5 mln dolarów mimo poparcia CFTC [osnews.pl]
Judge keeps Gemini $5 million CFTC settlement in place [mycryptoparadise.com]
Judge Rejects Gemini And CFTC Bid To Overturn $5 Million Settlement [www.newsbtc.com]
» Judge rejects CFTC, Gemini bid to vacate $5 million settlement [china.timesofnews.com]
Krypto-Hammer für Gemini: Nicht einmal die Reue der Aufsichtsbehörden hilft [www.btc-echo.de]