From CoinDesk · By Olivier Acuna
A federal judge rejected a joint request from Gemini and the Commodity Futures Trading Commission to overturn the crypto exchange’s $5 million settlement.
The judge ruled that the CFTC’s changed position did not justify undoing the January 2025 agreement and rejected Gemini’s claim that regulators had coerced it into settling.
A U.S. federal judge rejected an unusual joint request from crypto exchange Gemini and the Commodity Futures Trading Commission (CFTC) to overturn a $5 million settlement, even though the regulator said the case should not have been brought.
Federal Judge Alvin Hellerstein ruled Thursday that the CFTC’s decision to reverse its position on the case was not enough to undo Gemini’s January 2025 settlement. He also rejected Gemini’s argument that it had been coerced into settling by regulators.
Gemini, founded by Cameron and Tyler Winklevoss, has already paid the $5 million. The ruling also keeps the exchange under a court order prohibiting it from misleading the CFTC or publicly denying the settlement's findings.
The decision is significant because it shows that a friendlier approach to crypto regulation in Washington D.C. is not retroactive. It does not automatically erase earlier court judgments, even though the regulator and the company agree they should be withdrawn.
Gemini can still operate in the U.S. and introduce new products, but the ruling means it must live with the terms of its 2025 settlement as it shifts its business toward the American market.
The CFTC sued Gemini in 2023, alleging it misled regulators during a 2017 review of a proposed bitcoin futures contract. Gemini, which has not responded to a request for comment on Thursday’s ruling, settled three weeks before the trial without admitting or denying the allegations.
“Gemini litigated the case for approximately three years, and then, despite the preceding facts, made the calculated decision to settle the case shortly before trial,” the judge wrote.
Earlier this year, Gemini announced plans to exit the U.K., European Union and Australia and cut 25% of its workforce as it shifted resources toward the U.S. market and prediction markets. The company said it would continue operating in Singapore.