Gemini's $5 Million Settlement Agreement Denied Withdrawal, Fines and Injunctions Remain

U.S. District Judge Alvin Hellerstein denied the withdrawal of the $5 million settlement agreement between cryptocurrency exchange Gemini and the Commodity Futures Trading Commission (CFTC) on October 15, 2026, with the fines already paid and the permanent injunction remaining in effect. The dispute arose from Gemini's involvement in proposed Bitcoin futures contracts. The CFTC filed a lawsuit in June 2022, accusing it of misleading regulators regarding trading safeguards, customer financing, special rate arrangements, and activities that could affect contract pricing. The parties reached a settlement in January 2025, with Gemini neither admitting nor denying the allegations. In May 2026, the CFTC, after an internal review, jointly filed a motion with Gemini to withdraw the settlement, citing issues with whistleblower credibility, evidence, and enforcement practices. The judge found that the relevant circumstances existed prior to the settlement and that changes in enforcement priorities were insufficient to withdraw a binding court order; the CFTC retains enforcement discretion.

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