Judge keeps Gemini’s $5 million CFTC consent order in force

Can Gemini and the Commodity Futures Trading Commission undo their $5 million agreement? No: U.S. District Judge Alvin Hellerstein rejected their joint request on Oct. 15, leaving the consent order’s prospective injunction in force. Reuters’ report on the ruling says Hellerstein found they had not met the standard to set aside the settlement.

What did the CFTC and Gemini ask the judge to change?

They sought relief from the remaining prospective terms of the January 2025 consent order, including its injunction; Gemini agreed it would not get the $5 million penalty back. In May 2026, the CFTC said a review led it to conclude the complaint should not have been filed and would not have been under current enforcement standards. The agency said its review raised concerns about the evidence, its handling of internal deliberations and tactics used in the case, according to the CFTC’s announcement of the joint motion.

Why did Hellerstein leave the injunction in place?

The CFTC’s changed position did not, by itself, justify undoing the order, Reuters reported. Hellerstein also pointed to Gemini’s decision to settle after litigating the case for more than three years and shortly before trial. The case began in 2022, when the CFTC alleged Gemini made false or misleading statements during the agency’s review of a proposed bitcoin futures contract; the settlement resolved the lawsuit without undoing its remaining court-ordered terms.

What does the ruling mean for Gemini now?

The $5 million penalty remains paid, and the injunction remains in force. The CFTC’s reversal of its enforcement position did not erase the court order, so the agency and Gemini remain bound by its prospective terms. Watch for any further court filing from either party; until then, the January 2025 order stands.

References

• Reuters’ report on the ruling — investing.com
• CFTC’s announcement of the joint motion — cftc.gov