CFTC Wants to Drop Gemini’s $5M Settlement. A Judge Just Said No
Summary
A federal judge denied Gemini and the CFTC’s joint request to undo their $5 million settlement over alleged misleading statements tied to a proposed Bitcoin futures product. Judge Alvin Hellerstein ruled that changed enforcement priorities and allegations of agency misconduct did not justify reopening the consent order Gemini signed before trial. The settlement and permanent injunction remain in place, although the CFTC says it will not enforce a provision restricting Gemini’s public statements. Gemini has paid the penalty, which will not be refunded. The ruling leaves a compliance constraint as Gemini expands its CFTC-regulated offerings and highlights limits on regulators’ ability to reverse settled cases.
