A U.S. federal judge has rejected an unusual joint motion by cryptocurrency exchange Gemini and the Commodity Futures Trading Commission to undo a $5 million settlement reached in January 2025.
On October 15, 2026, U.S. District Judge Alvin Hellerstein of the Southern District of New York ruled that the parties had not presented sufficient grounds under Federal Rule of Civil Procedure 60 to vacate the consent order. The order resolved a CFTC lawsuit alleging that Gemini made false or misleading statements during the review of a proposed bitcoin futures contract.
Background of the Case
The CFTC filed the original action in 2022. Gemini settled the matter in January 2025 without admitting or denying the allegations, agreeing to pay a $5 million civil monetary penalty—which has already been paid—and accepting a permanent injunction barring it from making false or misleading statements to the CFTC.
In May 2026, Gemini and the CFTC jointly sought to vacate the order. They cited an internal agency review that questioned the strength of the original case and indicated the enforcement action would not have been pursued under current priorities.
Judge’s Ruling
Judge Hellerstein determined that newly acquired information about facts existing at the time of the settlement did not constitute a significant change in circumstances. He noted that Gemini had litigated the case for approximately three years before voluntarily settling three weeks prior to trial.
The ruling leaves the permanent injunction in place. Gemini has not publicly commented on the decision.
