A federal judge in New York has turned down a joint request from crypto exchange Gemini and the US Commodity Futures Trading Commission (CFTC) to cancel the settlement they agreed in January 2025. This is not a new fine. It means the existing settlement, including the $5 million penalty Gemini has already paid, stays in place.
The Block reported that Judge Alvin Hellerstein of the US District Court for the Southern District of New York (SDNY) rejected the motion on Thursday.
The original case
The CFTC, which regulates US derivatives markets, sued Gemini in 2022. It alleged that the exchange made false or misleading statements of material fact to CFTC staff while the agency was reviewing a proposed bitcoin futures contract.
The case was settled through a consent order in January 2025, entered three weeks before trial was due to begin, The Block reported. Under the order, Gemini paid a $5 million civil penalty and was permanently barred from making false or misleading statements or omissions to the CFTC.
The unusual joint request
On 28 May 2026, Gemini and the CFTC, the two sides of the original case, jointly asked the court to vacate, or cancel, the order. According to The Block, the CFTC said it should not have brought the complaint and would not have done so under its renewed enforcement priorities. Gemini argued that it had agreed to settle under coercive regulatory pressure.
The request was unusual because it came from both sides of the original case, the regulator that sued and the company it sued.
Why the judge said no
Judge Hellerstein ruled that the arguments did not justify reopening the judgment, The Block reported. He said the facts involved related to information available before the settlement, not developments after it.
“Newly acquired knowledge of facts that existed at the time the Consent Order was entered does not constitute a significant change in factual circumstances,” the court said, according to The Block. “The CFTC’s present assessment that this action should not have been brought does not require vacatur or other relief.”
On Gemini’s pressure argument, the judge said this did not show that its consent was involuntary. The Block reported that he pointed out the exchange had fought the case for roughly three years and knew about relevant internal issues, including a fraud scheme involving its former chief operating officer. Gemini ultimately “made the calculated decision to settle the case shortly before trial,” the court said, as quoted by The Block.
In short, the court found that the CFTC’s change of view did not, on its own, justify undoing a judgment the court had already entered.
What it means for Gemini
Nothing changes in practice. The penalty has already been paid, and the permanent order barring false or misleading statements to the CFTC remains in force. No new money is owed.
The Block said it had asked Gemini and the CFTC for comment.
What’s still unknown
It is not yet known whether Gemini or the CFTC will appeal, or ask the court to reconsider. TSN has not read the court’s order directly; the quotes above are as reported by The Block.
What to watch
Watch for any appeal or new filing in the case, and for whether other companies that settled with the CFTC try a similar route.
What this means
- Settlement stands. The court refused to cancel the January 2025 consent order.
- No new fine. The $5 million penalty was paid long ago; nothing new is owed.
- Courts have the final say. A regulator changing its mind is not enough to undo a court order.
Sources
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