Judge Rejects Bid to Undo $5 Million Gemini-CFTC Settlement

The decision, handed down on October 15, leaves the financial penalty and restrictive oversight firmly in place. Gemini had already paid the $5 million fine following the January 2025 agreement, which settled claims that the exchange provided false information to the regulator regarding a proposed Bitcoin futures contract. Both parties had sought to overturn the judgment after a subsequent internal CFTC review concluded that the original lawsuit failed to meet current enforcement standards.

Judge Hellerstein found that neither the alleged procedural errors nor the shift in federal cryptocurrency policy under the current administration provided sufficient legal grounds to set aside the settlement. He noted that Gemini’s decision to accept the terms—made just weeks before a scheduled trial after three years of litigation—was voluntary. The judge dismissed arguments that internal agency disclosures regarding a questionable whistleblower and withheld evidence constituted a change in circumstances severe enough to render the continued enforcement unfair. Consequently, Gemini remains bound by a permanent injunction prohibiting the exchange from making misleading statements to the commission.