US CFTC Admits 2022 Gemini Lawsuit "Should Not Have Been Filed", Parties Jointly Seek to Vacate Judgment

Odaily Planet Daily News: The United States Commodity Futures Trading Commission (CFTC) announced that it has jointly filed for an exemption from judgment with Gemini Trust Company LLC regarding the lawsuit initiated against Gemini in 2022.

It is reported that the case was filed in June 2022, and both parties reached a settlement agreement in January 2025. After a comprehensive review, the CFTC concluded that the case should not have been brought and would not be pursued under current enforcement standards.

The review report identified six major issues, including: the lawsuit was primarily based on statements from a whistleblower known to lack credibility; the investigation targeted Gemini as the victim rather than focusing on the alleged fraudsters; doubts existed regarding the strength of evidence against Gemini; key evidence was not provided to commissioners during their vote; litigation attorneys used deliberative privilege to prevent Gemini from accessing defense materials; and personnel involved were suspected of using regulatory authority to pressure Gemini into a settlement.