Judge Rejects Gemini, CFTC Bid To Overturn $5M Settlement In Bitcoin Futures Case

• A federal judge in Manhattan tossed a joint settlement bid by Gemini and the CFTC to void a $5 million agreement.
• US District Judge Alvin Hellerstein ruled that the parties had not met the legal standards to vacate the settlement.
• The request to undo the settlement marked a change in the Trump administration's crypto enforcement priorities, but the judge said those changes weren't enough to void the deal.

A federal judge in Manhattan dismissed a joint motion by the U.S. Commodity Futures Trading Commission (CFTC) and cryptocurrency exchange Gemini to vacate a $5 million settlement over allegations that Gemini made misleading statements during the regulator's review of a proposed Bitcoin (BTC) futures contract.

Reuters reported on Thursday that US District Judge Alvin Hellerstein said Gemini Trust Co. and the agency had not met the legal standards to set aside the settlement. He said Gemini agreed to voluntary settlement after more than three years of litigation.

The move comes as President Donald Trump's administration takes a narrower view on cryptocurrency enforcement, raising questions over whether the administration will try to reverse cases brought under former President Joe Biden.

CFTC, Gemini Sought To Reverse Settlement

The CFTC sued Gemini in 2022, under Chairman Rostin Behnam, saying the exchange made false or misleading statements while the agency was reviewing a proposed Bitcoin futures product.

The case was settled in January 2025, just before trial and at the close of the Biden administration. Under the agreement, Gemini paid a $5 million penalty.

In May, the CFTC and Gemini jointly asked Hellerstein to vacate the settlement and related court order. They said the suit would not have been filed under the Trump administration's revamped enforcement priorities and standards.

The parties also alleged that the regulator had resorted to inappropriate tactics in bringing the case against Gemini over its Bitcoin futures business.

Gemini agreed not to seek a refund of the $5 million penalty if the court granted the request to vacate the settlement.

Hellerstein, however, said the CFTC's current assessment of the case did not justify overturning the agreement. The judge was appointed to the federal bench by former President Bill Clinton.

Trump Administration Takes Different Crypto Approach

The ruling comes amid moves by the Trump administration toward a more crypto-friendly regulatory posture. The Justice Department closed its cryptocurrency enforcement unit in April 2025, as part of a broader shift in enforcement priorities.

But the latest decision points out that changes in government policy do not automatically nullify previously negotiated settlements or court orders.

Gemini stock closed down by nearly 8% on Friday. On Stocktwits, the retail sentiment around GEMI remained in the ‘bearish’ zone, while chatter around it stayed at ‘extremely low’ levels over the past day.

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