- A federal judge in Manhattan rejected a joint request by Gemini and the CFTC to void a $5 million settlement over misleading statements.
- US District Judge Alvin Hellerstein ruled that the parties failed to meet legal standards for vacating the deal.
- The Trump administration’s shift in crypto enforcement priorities was not enough to overturn the agreement, the judge said.
- Gemini’s stock dropped nearly 8% following the ruling, with retail sentiment remaining bearish on Stocktwits.
A federal judge in Manhattan has blocked a joint bid by cryptocurrency exchange Gemini and the U.S. Commodity Futures Trading Commission to unwind a $5 million settlement over alleged misleading statements during the regulator’s review of a Bitcoin futures contract. US District Judge Alvin Hellerstein ruled that the parties had not met the legal standards required to vacate the settlement, which Gemini voluntarily agreed to after more than three years of litigation.
The CFTC originally sued Gemini in 2022, accusing the exchange of making false or misleading statements while the agency evaluated a proposed Bitcoin futures product. The case was settled in January 2025, just before trial and at the close of the Biden administration, with Gemini paying the $5 million penalty. However, in May 2025, the CFTC and Gemini jointly asked Hellerstein to set aside the settlement, arguing that the suit would not have been filed under the Trump administration’s revamped enforcement priorities.
The parties also claimed the regulator had used inappropriate tactics in bringing the case. Hellerstein, appointed by former President Bill Clinton, disagreed, stating that the CFTC’s current assessment did not justify overturning the agreement. Meanwhile, the Trump administration has pursued a more crypto-friendly approach, including shutting down the Justice Department’s cryptocurrency enforcement unit in April 2025. But the ruling makes clear that policy shifts do not automatically nullify previously negotiated settlements.
Following the decision, Gemini stock closed down nearly 8% on Friday. On Stocktwits, retail sentiment around the ticker remained in the bearish zone, with chatter at extremely low levels.
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