Judge denies Gemini and CFTC’s joint bid to undo the exchange’s $5 million settlement

Published Fri, 16 Oct 2026 05:44:05 UTC · Updated Fri, 16 Oct 2026 19:06:23 UTC · Edited by Bizzle · AI-assisted

⚪NeutralA judge kept Gemini's $5 million CFTC settlement in place, which matters to Gemini but has little wider effect.News sentiment, not financial advice. It reflects the likely impact of this news, not a price prediction.

Summary

A U.S. federal judge in New York rejected a joint request from crypto exchange Gemini and the CFTC to vacate Gemini’s January 2025 consent order and $5 million civil penalty, CoinDesk, The Block and Cointelegraph reported on Oct. 16.

Judge Alvin Hellerstein of the Southern District of New York ruled that the CFTC’s later view that the case should not have been brought, and Gemini’s claim it settled under coercive pressure, were not enough to reopen the judgment, the outlets said.

The Block reported the underlying 2022 suit alleged Gemini made false or misleading statements during review of a proposed bitcoin futures contract; CoinDesk said Gemini has already paid the $5 million and remains under an order against misleading the CFTC.

CoinDesk noted the May 2026 joint motion came as Gemini shifts focus to the U.S. market; The Block said the parties filed the vacatur motion on May 28, 2026.

Decrypt, which also covered the decision, said the ruling was dated Oct. 15, noted Gemini signed the deal roughly three weeks before trial, and reported the $5 million penalty stays with the government.

Updates

Update, Fri, 16 Oct 2026 19:06:23 UTC: Added Decrypt’s Oct. 16 report: Judge Hellerstein’s ruling is dated Oct. 15, keeps the permanent injunction in place, and the $5 million Gemini paid will not be refunded.

Key facts

Judge Alvin Hellerstein denied the joint CFTC-Gemini motion to vacate the January 2025 consent order. (The Block)
The order imposed a $5 million civil penalty, which Gemini has paid, and a permanent injunction. (CoinDesk)
The CFTC and Gemini jointly moved to vacate the order on May 28, 2026. (The Block)
The judge said Gemini litigated for about three years then made a calculated decision to settle shortly before trial. (CoinDesk)
Decrypt said the ruling was issued Oct. 15 and quoted Judge Hellerstein: “Neither of these two grounds is sufficient to support vacating the settlement.” (Decrypt)
The injunction also bars Gemini from publicly denying the settlement’s findings, though Decrypt said the CFTC has said it would no longer enforce that provision. (Decrypt)
Decrypt said the parties had previously said the $5 million would not be refunded even if the motion succeeded. (Decrypt)