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Hellerstein keeps Gemini’s $5 million CFTC settlement in place

A Manhattan judge denied Gemini and the CFTC’s joint bid to undo a 2025 consent order, leaving the $5 million penalty paid and injunction in place.

BitCurrent Newsroom2 min read

Hellerstein keeps Gemini’s $5 million CFTC settlement in place

U.S. District Judge Alvin Hellerstein denied Gemini Trust and the CFTC’s joint request to vacate their consent order, leaving the 2025 settlement in force. The case stemmed from the CFTC’s review of Gemini’s proposed bitcoin futures contract.

  • 2022: The CFTC filed its lawsuit against Gemini.
  • January 2025: The parties settled before trial.
  • $5 million: The civil penalty Gemini paid.

What terms remain in force?

The court’s October 15 order leaves the consent order intact, including its permanent injunction. The CFTC’s original order barred Gemini from making false or misleading statements or omissions to the agency.

The penalty has already been paid. In its May announcement of the joint motion, the CFTC said Gemini would not receive the $5 million back, even if the court vacated the order’s prospective provisions.

Why did Gemini and the CFTC ask to undo it?

The CFTC said a review of the investigation led it to conclude the complaint should not have been filed and would not have been brought under its current enforcement standards. Gemini and the agency argued that the remaining injunction should no longer apply.

The original lawsuit alleged that Gemini made false or misleading statements during the agency’s review of a proposed bitcoin futures product. Gemini settled without admitting or denying the allegations, according to the CFTC’s January 2025 announcement of the consent order.

Why did Hellerstein reject the request?

The judge said the parties had not met the standard to reopen the judgment. As reported by The Block, he found that the facts cited by the parties were not new developments after the order; they concerned information available before the settlement.

He also rejected Gemini’s claim that regulatory pressure made its agreement involuntary. The court noted that Gemini had litigated the case for about three years before settling shortly before trial.

The ruling confirms that the CFTC’s changed view of the case does not, by itself, erase the court order. The joint bid to vacate it has been denied; the $5 million penalty and injunction remain in place.

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