Judge Rejects CFTC Bid to Drop $5M Gemini Settlement

Gemini settlement — A federal judge has denied a request from the Commodity Futures Trading Commission (CFTC) to drop a $5 million settlement with crypto exchange Gemini, ensuring the penalty will stand.

The CFTC had moved to dismiss the settlement, citing a shift in its enforcement priorities and allegations of misconduct within its own enforcement division. However, Judge Mary Kay Vyskocil of the U.S. District Court for the Southern District of New York ruled that these factors were insufficient grounds to reopen the agreement, which Gemini signed just weeks before a scheduled trial.

The settlement stems from a 2024 lawsuit in which the CFTC alleged Gemini made false and misleading statements to the commission regarding its Bitcoin futures contract. The case was a significant part of the regulator’s broader crackdown on the crypto industry at the time.

The judge’s decision underscores the finality of settled enforcement actions, even when the prosecuting agency later seeks to change course. The ruling means Gemini must pay the $5 million civil monetary penalty as originally agreed.