A Manhattan federal judge has rejected a joint request by the U.S. Commodity Futures Trading Commission (CFTC) and Gemini Trust Co. to overturn a $5 million settlement reached in January 2025. The decision leaves the penalty in place over alleged misleading statements related to Gemini’s proposed Bitcoin futures contract.
U.S. District Judge Alvin Hellerstein ruled Thursday that the parties had failed to meet the legal requirements for canceling the agreement. They argued that the case would not have proceeded under President Donald Trump’s crypto enforcement priorities.
Judge Rejects Bid to Vacate Gemini Settlement
The CFTC sued Gemini in June 2022, alleging that the exchange made false or misleading statements during the review of its proposed Bitcoin futures contract. The case continued for more than three years before Gemini settled shortly before trial.
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In May 2026, both parties asked Hellerstein to overturn the settlement and related court order. They argued that the agency had “resorted to inappropriate tactics” in pursuing the lawsuit.
However, the judge rejected their request, finding that their arguments did not satisfy the legal requirements for overturning the agreement. Gemini also agreed not to seek a refund of the $5 million penalty.
Trump Administration Shifts Crypto Enforcement
The CFTC and Gemini cited the Trump administration’s narrower approach to cryptocurrency enforcement in their request to vacate the settlement. However, the judge’s decision leaves the original agreement and penalty intact.
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