U.S. CFTC admits 2022 lawsuit against Gemini "should not have been brought," both parties jointly file to vacate judgment

Odaily Planet Daily News: The Commodity Futures Trading Commission (CFTC) announced that it has jointly filed for an exemption from the judgment with Gemini Trust Company LLC in connection with the lawsuit filed against them 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 have been initiated under current enforcement standards.

The review report identifies six major issues, including: the lawsuit was primarily based on the statements of a whistleblower known to lack credibility; the investigation focused on pursuing Gemini, the victim, rather than the alleged fraudsters; there were doubts about the strength of the evidence against Gemini; key evidence was not provided to the commissioners during the vote; litigation attorneys used deliberative privilege to prevent Gemini from accessing defense materials; and relevant individuals were suspected of using regulatory power to pressure Gemini into settling.