Judge rejects CFTC, Gemini bid to vacate $5 million settlement
A US federal judge has rejected a joint request from the crypto exchange Gemini and the Commodity Futures Trading Commission (CFTC) to overturn a $5 million settlement. According to Cointelegraph, US District Judge Alvin Hellerstein ruled that changes in the CFTC’s enforcement priorities and allegations of misconduct within its enforcement division were insufficient to void the January 2025 agreement.
Moneyweb reports that the original 2022 lawsuit accused the platform of making false and misleading statements during an agency review of a proposed Bitcoin futures contract.
The CFTC and Gemini sought to overturn the deal after an internal review alleged misconduct by the regulator's enforcement division, which included improper regulatory pressure, efforts to prevent the disclosure of evidence, and reliance on a questionable whistleblower, Cointelegraph reports. Although the CFTC stated the case should never have been presented and indicated in June it would no longer enforce certain restrictions, the judge's ruling leaves the settlement intact.
Gemini has already paid the $5 million penalty, which the CFTC previously told Cointelegraph would not be refunded even if the settlement were overturned. CoinDesk notes that the court order and restrictions from the settlement will not be lifted. The ruling maintains a permanent injunction barring Gemini from making false or misleading statements to the CFTC and prohibits the exchange from publicly denying the settlement's findings.
Brief written by urgent.news from Decrypt, CoinDesk, Moneyweb, Cointelegraph — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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- Judge rejects CFTC, Gemini bid to undo $5M settlement cointelegraph.com
- CFTC Wants to Drop Gemini’s $5M Settlement. A Judge Just Said No decrypt.co
- U.S. judge rejects Gemini’s appeal to void $5 million settlement despite CFTC backing coindesk.com
- Judge rejects Gemini, CFTC bid to undo $5m settlement moneyweb.co.za
- Judge rejects CFTC, Gemini bid to vacate $5 million settlement channelnewsasia.com
