A U.S. federal judge has turned down a joint request from cryptocurrency exchange Gemini and the Commodity Futures Trading Commission (CFTC) to set aside their $5 million settlement, even after the regulator argued that the underlying lawsuit should never have been filed.
Judge Alvin Hellerstein ruled Thursday that the CFTC’s decision to change its position was not sufficient to invalidate the settlement reached in January 2025. He also rejected Gemini’s claim that it had been pressured into accepting the agreement by regulators.
Gemini, founded by Cameron and Tyler Winklevoss, has already paid the $5 million. The court’s decision also preserves restrictions preventing the exchange from misleading the CFTC or publicly disavowing the settlement’s findings.
The ruling demonstrates that a more accommodating regulatory stance toward cryptocurrencies in Washington does not automatically undo previous legal decisions. Even when both a company and the regulator support withdrawing a case, an established settlement may remain legally binding.
Gemini can continue operating in the U.S. and launching new services, but it must abide by the terms of its 2025 agreement as it shifts more of its business toward the American market.
The CFTC brought the lawsuit in 2023, alleging that Gemini had provided misleading information to regulators during a 2017 review of a proposed Bitcoin futures contract. The exchange agreed to settle the dispute three weeks before the trial was scheduled to begin, without admitting or denying the allegations. Gemini had not commented on Thursday’s ruling in response to a request for comment.
Hellerstein noted that Gemini had fought the case for about three years before making what he described as a calculated decision to settle shortly before trial.
Earlier this year, Gemini announced plans to exit the United Kingdom, the European Union and Australia and reduce its workforce by 25%. The exchange said the move would allow it to focus more resources on the U.S. market and prediction-market offerings, while continuing its operations in Singapore.
