U.S. Court Denies Gemini’s Settlement Challenge Despite CFTC’s Backing

A U.S. federal judge has rejected Gemini’s attempt to overturn its $5 million settlement with the Commodity Futures Trading Commission (CFTC), despite the regulator’s support for reversing the agreement and its position that the original lawsuit should not have been brought.

Judge Alvin Hellerstein ruled on Thursday that the CFTC’s change of stance was insufficient to void the settlement reached in January 2025. He also rejected Gemini’s claim that the company had been forced to settle under pressure from regulators.

The cryptocurrency exchange, founded by Cameron and Tyler Winklevoss, has already paid the $5 million penalty. The ruling leaves intact a court order requiring Gemini not to mislead the CFTC or publicly deny the findings outlined in the settlement.

The decision highlights that a more favorable regulatory environment for the crypto industry does not automatically erase earlier legal outcomes. Even when both a regulator and a company agree to reverse a settlement, a court can decide that the existing agreement must remain in force.

Gemini can continue operating in the United States and launching new products, but the exchange must comply with the terms of its 2025 settlement as it concentrates more of its business on the American market.

The CFTC filed its lawsuit against Gemini in 2023, alleging that the exchange misled regulators during a 2017 review of a proposed Bitcoin futures contract. Gemini reached a settlement three weeks before the case was scheduled to go to trial, without admitting or denying the allegations. The company had not responded to a request for comment on Thursday’s ruling.

Hellerstein noted that Gemini had spent roughly three years contesting the lawsuit before choosing to settle shortly before trial. The judge characterized the decision as a calculated move made by the exchange.

Earlier this year, Gemini outlined plans to exit the United Kingdom, the European Union and Australia while reducing its workforce by 25%. The company said it would concentrate its resources on the U.S. market and prediction-market services, although it intends to maintain operations in Singapore.

The ruling leaves Gemini bound by the existing settlement despite the CFTC’s change in position, adding a legal constraint as the company reshapes its international strategy and prioritizes its U.S. business.