Judge keeps Gemini’s $5 million CFTC consent order in force
A Manhattan judge left Gemini’s $5 million CFTC consent order in force, rejecting the regulator and exchange’s joint bid to undo it after the agency reversed course.
The Top Crypto Editors 2 min read
Can Gemini and the CFTC undo the exchange’s $5 million settlement? No: U.S. District Judge Alvin Hellerstein denied their joint bid on Oct. 15, leaving the January 2025 consent order in force. The Block’s report on the ruling says Hellerstein found the parties’ arguments insufficient to reopen the judgment.
What did the consent order require Gemini to do?
The order resolved a CFTC lawsuit filed in June 2022 over statements Gemini allegedly made to agency staff while the CFTC reviewed a proposed bitcoin futures contract. Gemini agreed to pay a $5 million civil penalty and was permanently enjoined from making false or misleading statements or omissions to the agency. The exchange paid the penalty before seeking to undo the order.
Why did the CFTC join Gemini’s request?
In May 2026, the CFTC said a review of the case led it to conclude that the complaint should not have been filed under its current enforcement standards. The agency cited concerns about the evidence and its own litigation conduct, and said continuing to enforce the order’s prospective provisions served neither its mission nor the public interest. Its May announcement of the joint motion said Gemini would not get the $5 million back.
Why did the judge leave the order in place?
Hellerstein said the parties’ arguments did not establish grounds to reopen the judgment. As reported by The Block, he reasoned that the facts raised by the parties existed before the consent order, so learning more about them later did not amount to a significant change in circumstances. He also said the CFTC’s current view that the case should not have been brought did not itself require relief, and that Gemini had litigated for about three years before choosing to settle shortly before trial.
The denial leaves both the paid penalty and the permanent injunction in place. Watch for any appeal by Gemini or the CFTC; neither report announced a next court date.
References
- The Block’s report on the ruling — theblock.co
- May announcement of the joint motion — cftc.gov