Judge Upholds Gemini’s $5M CFTC Settlement After Agency’s Reversal

Gemini Settlement Stands Despite CFTC About-Face

Judge Alvin Hellerstein rejected a bid to overturn a $5 million settlement between the Commodity Futures Trading Commission (CFTC) and cryptocurrency exchange Gemini. The unusual move came after the CFTC itself conceded its original lawsuit against Gemini should not have been brought forward.

The CFTC and Gemini jointly petitioned the court to vacate the settlement, but Judge Hellerstein ruled against them on October 15, 2026. This means the $5 million penalty remains in effect, as does the permanent injunction initially agreed upon as part of the settlement.

The original CFTC complaint, filed in June 2023, alleged that Gemini offered and accepted deposits for unregistered commodity futures contracts through its Earn program. The agency’s subsequent reversal suggests a reassessment of its legal position regarding the Earn program and its compliance with regulations. However, the judge’s decision indicates a reluctance to retroactively nullify a previously agreed-upon settlement, even with the CFTC’s concurrence.

The case highlights the evolving regulatory landscape for crypto firms and the potential for agencies to re-evaluate their enforcement actions. It also underscores the legal complexities surrounding the classification of crypto products and services.

Source: Bitcoin.com News