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Judge leaves Gemini’s $5 million CFTC order in place

A Manhattan judge left Gemini’s $5 million CFTC consent order in place, finding the agency and exchange had not shown grounds to reopen a case settled before trial.

BitCurrent Newsroom2 min read

Judge leaves Gemini’s $5 million CFTC order in place

The Commodity Futures Trading Commission and Gemini settled a case over a proposed bitcoin futures contract before trial in 2025. On Thursday, a Manhattan judge rejected their joint request to undo the consent order, leaving its $5 million penalty and injunction in place, according to Reuters’ report.

  • The CFTC filed its lawsuit in 2022.
  • The consent order was entered in January 2025.
  • Gemini paid a $5 million civil penalty.
  • The exchange litigated the case for more than three years before settling.

Why did the judge reject the joint request?

Judge Alvin Hellerstein of the Southern District of New York found the parties had not shown grounds to reopen the judgment. The Block reported that he considered the CFTC’s changed view of the case insufficient to justify vacating the order.

The CFTC and Gemini argued that the complaint would not have been brought under the agency’s current enforcement priorities. Gemini also said it had settled under regulatory pressure.

Hellerstein said the facts the parties cited were known before the settlement, rather than new developments afterward. He also found that Gemini’s claim of pressure did not establish that its consent was involuntary: the exchange had litigated for years and made a calculated decision to settle shortly before trial, The Block reported.

What does the order leave in place?

The January 2025 consent order resolved the CFTC’s lawsuit alleging that Gemini made false or misleading statements to agency staff during review of its proposed bitcoin futures contract. The order required Gemini to pay the penalty and permanently barred it from making false or misleading statements or omissions to the CFTC.

The penalty has already been paid. The CFTC and Gemini had agreed that vacating the order would not trigger a refund, but sought to remove its prospective provisions, including the injunction.

What remains open?

The ruling leaves the consent order in effect. Reuters reported that the CFTC and Gemini did not immediately respond to requests for comment; the reports reviewed did not say whether either party plans to appeal.

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