Judge Rejects CFTC and Gemini Bid to Vacate $5 Million Settlement in Bitcoin Futures Case
WASHINGTON — A federal judge in Manhattan has rejected a joint request by the U.S. Commodity Futures Trading Commission and Gemini, the cryptocurrency exchange founded by twin brothers Cameron and Tyler Winklevoss, to undo a $5 million settlement from the Biden administration, Reuters reported on October 16. In a ruling on Thursday, U.S. District Judge Alvin Hellerstein said the agency and Gemini Trust Co had not met the standards required to set aside the settlement, which resolved a lawsuit over statements Gemini made during the agency's review of a proposed bitcoin futures contract.
The CFTC sued Gemini in 2022, under Chairman Rostin Behnam, alleging the company made false or misleading statements during the agency's review of the proposed futures product. The January 2025 settlement came at the end of Democratic President Joe Biden's administration and shortly before a trial; under the agreement, Gemini paid a $5 million penalty. In May, the CFTC and Gemini jointly asked Hellerstein to wipe out the settlement and court order, saying in a filing that the 2022 complaint would not have been filed under the Trump administration's new enforcement policy priorities and standards, that regulators should not have accused Gemini of making false statements in connection with its bitcoin futures business, and that the CFTC had "resorted to inappropriate tactics" to bring the lawsuit. Gemini agreed not to receive a refund on the $5 million penalty if the settlement were vacated.
Hellerstein said Gemini had litigated against the CFTC for more than three years before voluntarily agreeing to settle, and that the agency's current view of the case does not require vacating the settlement. The CFTC and a lawyer for Gemini did not immediately respond to requests for comment,
Reuters said. The request formed part of the Trump administration's friendlier, narrower approach to crypto sector enforcement, raising questions over whether the administration will try to reverse other cases brought under former President Joe Biden. Hellerstein was appointed by Democratic President Bill Clinton.
Published by GSM · USA (original Chinese edition)
Photo: 图：瑟古德·马歇尔美国法院大楼（纽约曼哈顿，纽约南区联邦地区法院所在地）资料照片。照片：Americasroof，CC BY-SA 3.0，Wikimedia Commons。File photo: the Thurgood Marshall U.S. Courthouse in Manhattan, home of the U.S. District Court for the Southern District of New York. Photo by Americasroof, CC BY-SA 3.0, via Wikimedia Commons.
