U.S. District Judge Alvin Hellerstein formally denied a request on October 15, 2026, to vacate the $5 million settlement between cryptocurrency exchange Gemini and the U.S. Commodity Futures Trading Commission (CFTC). The existing fine, which has already been paid, and the permanent injunction will remain in effect. The lawsuit began in June 2022, when the CFTC accused Gemini of misleading regulators while participating in a proposed Bitcoin futures contract, including in connection with trading safeguards, customer financing, special fee arrangements, and activities that could potentially affect pricing. The parties reached a settlement in January 2025, with Gemini neither admitting nor denying the allegations. In May 2026, following an internal review, the CFTC concluded that the original lawsuit should not have been brought and, citing concerns about the whistleblower’s credibility, the evidence, and enforcement practices, jointly asked with Gemini to vacate the agreement. The judge ruled, however, that these circumstances existed before the settlement and that a shift in the regulator’s enforcement priorities was not grounds to vacate a binding court order. The CFTC retains its enforcement discretion.

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