U.S. Judge Rejects Gemini Bid to Overturn $5M Settlement Despite CFTC Support

A U.S. federal judge has denied a joint request from cryptocurrency exchange Gemini and the Commodity Futures Trading Commission (CFTC) to overturn their $5 million settlement, despite the regulator’s position that the original case should never have been filed.

Federal Judge Alvin Hellerstein ruled on Thursday that the CFTC’s change of position did not provide sufficient grounds to cancel Gemini’s January 2025 settlement. He also rejected the exchange’s claim that regulatory pressure had forced it to agree to the deal.

Founded by Cameron and Tyler Winklevoss, Gemini has already paid the $5 million penalty. The ruling also leaves in place a court order preventing the exchange from misleading the CFTC or publicly disputing the findings established by the settlement.

The decision highlights that a shift toward more crypto-friendly regulation in Washington does not automatically reverse previous legal outcomes. Even when a regulator and a company jointly seek to withdraw a settlement, existing court judgments are not necessarily erased.

Gemini remains free to operate in the United States and launch new products. However, the ruling means the exchange must continue to comply with the conditions of its 2025 settlement as it focuses more of its business on the American market.

The CFTC filed its lawsuit against Gemini in 2023, accusing the exchange of misleading regulators during a 2017 review of a proposed Bitcoin futures contract. Gemini settled the dispute three weeks before the scheduled trial, without admitting or denying the allegations. The company had not responded to a request for comment on Thursday’s decision.

In his ruling, Hellerstein noted that Gemini had spent approximately three years litigating the case before making a deliberate decision to settle shortly before trial.

Earlier this year, Gemini announced plans to withdraw from the United Kingdom, the European Union and Australia while reducing its workforce by 25%. The company said it would redirect resources toward the U.S. market and prediction markets, while continuing operations in Singapore.