A US judge denied Gemini's request to void the $5 million settlement despite the CFTC's support

The crypto exchange has already paid up, but the court order and restrictions on its 2025 settlement will not be lifted, even though the CFTC said the case should never have been filed.

A US federal judge rejected an unusual joint request by cryptocurrency exchange Gemini and the Commodity Futures Trading Commission (CFTC) to overturn a $5 million settlement, even though the regulator said the case should not have been brought.

Federal Judge Alvin Hellerstein ruled Thursday that the CFTC's decision to change its position on the case was not enough to nullify the January 2025 Gemini settlement. He also rejected Gemini's argument that it was forced to settle by regulators.

Founded by Cameron and Tyler Winklevoss, Gemini has already paid out $5 million. The ruling also keeps the exchange under a court order barring it from misleading the CFTC or publicly denying the settlement's findings.

This decision is important because it shows that the friendlier approach to cryptocurrency regulation in Washington, DC is not retroactive. This does not automatically erase previous court rulings, even if the regulator and the company agree that they should be overturned.

Gemini can still operate in the US and introduce new products, but the ruling means it must comply with the terms of its 2025 settlement as it shifts its business towards the US market.

The CFTC sued Gemini in 2023, alleging that it misled regulators during its investigation of the 2017 Bitcoin futures contract. Gemini, who did not respond to a request for comment on Thursday's ruling, reached a plea deal three weeks before the trial without admitting or denying the charges.

"Gemini wrote the case for that lawsuit: almost three years, and then, despite the facts, made a calculated decision to settle the case shortly before trial.

Earlier this year, Gemini announced plans to exit the UK, EU and Australia and cut 25% of its workforce as it shifted resources to the US and forecast markets. The company announced that it will continue to operate in Singapore.

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