US Judge Upholds Gemini’s $5M CFTC Settlement Despite Joint Bid to Vacate

What happened: U.S. District Judge Alvin Hellerstein denied a joint motion by Gemini and the CFTC to vacate a $5 million consent order from January 2025, which resolved allegations that Gemini misled regulators during a Bitcoin futures review. The CFTC, under new leadership, argued it would not have filed the complaint today, citing new evidence and shifting enforcement priorities, but the judge ruled that these factors did not justify reopening the settlement.

Why it matters: The decision underscores the judiciary’s reluctance to revisit finalized settlements, even when both parties agree and regulatory priorities have changed. The case is emblematic of a broader trend of U.S. agencies reconsidering crypto enforcement actions from prior administrations, raising questions about the politicization of regulatory oversight and the finality of settlements in the crypto sector.

Source: The Block