Gemini's $5 Million Settlement Rejection Overturned, Paid Fine and Permanent Injunction Upheld

Odaily reports: U.S. District Judge Alvin Hellerstein on October 15, 2026, declined to vacate the $5 million settlement agreement between crypto exchange Gemini and the U.S. Commodity Futures Trading Commission (CFTC), leaving the paid fine and permanent injunction in effect. Previously, the CFTC had stated that the original lawsuit should never have been brought.

The dispute stemmed from Gemini's involvement in proposed Bitcoin futures contracts. The CFTC filed suit in June 2022, alleging that Gemini misled regulators regarding trading safeguards, customer financing, special fee arrangements, and activities that could potentially affect contract pricing; the two parties settled in January 2025, with Gemini neither admitting nor denying the allegations.

In May 2026, following an internal review, the CFTC and Gemini jointly sought to vacate the settlement, citing issues with whistleblower credibility, evidence, and enforcement practices. The judge found that the relevant circumstances had existed prior to the settlement and that a change in enforcement priorities was insufficient to vacate a binding court order; the CFTC retains its enforcement discretion. (Bitcoin.com News)