U.S. CFTC Acknowledges 2022 Lawsuit Against Gemini "Should Not Have Been Filed," Both Parties Jointly Seek to Vacate Judgment

Odaily Planet Daily News The U.S. Commodity Futures Trading Commission (CFTC) announced that it has jointly filed a motion to vacate the judgment with Gemini Trust Company LLC regarding the 2022 lawsuit.

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 pointed out six main issues, including: the prosecution was primarily based on statements from a whistleblower known to lack credibility; the investigation targeted Gemini, the aggrieved party, rather than focusing on the alleged fraudsters; questions existed regarding the strength of the evidence against Gemini; key evidence was not provided to the commissioners during their vote; litigation attorneys used deliberative privilege to prevent Gemini from accessing defense materials; and relevant personnel were suspected of using regulatory power to pressure Gemini into a settlement.