Plaintiff and defendant team up to “undo” the ruling; judge’s response: two words—No way
A rare legal drama has unfolded in crypto over the past few days: cryptocurrency exchange Gemini and the U.S. Commodity Futures Trading Commission (CFTC), which sued it, jointly appeared before a judge to ask that a January 2025 consent order imposing a $5 million penalty be vacated.
On October 15, U.S. District Judge Alvin Hellerstein of the Southern District of New York denied the joint motion. The $5 million penalty has been paid and will not be refunded. More importantly, the permanent injunction remains in effect: Gemini is still prohibited from making false statements to the CFTC or publicly denying the facts established in the consent order.
The case dates back to 2017. In 2022, the CFTC sued Gemini, alleging that during a review of Bitcoin futures contracts that year, the company made false or misleading statements to regulators concerning issues such as prefunding, wash trading, fee rebates, and trading volume. In January 2025, just three weeks before trial, Gemini opted to settle, neither admitting nor denying the allegations.
The turning point came on May 28 this year: after a change in administration, the CFTC concluded in an internal review that “this case should never have been brought,” and joined Gemini in asking the court to vacate the judgment under Rule 60 of the Federal Rules of Civil Procedure. Gemini also argued that it had been forced to settle under regulatory pressure.
The judge’s reasoning was firm: a change in the regulatory climate does not mean a court judgment can be nullified. Gemini had voluntarily settled after “doing the math” three weeks before trial; regretting that decision afterward is not a legal basis for reopening the judgment.
The message to the entire industry is clear: even if Washington becomes more crypto-friendly, it is no “time machine”—enforcement cases that have been conclusively decided will not automatically be wiped clean just because regulators have new leadership. Companies hoping that new policies will make old fines disappear can give up on that idea.
And this injunction will follow Gemini as it shifts its focus to the U.S. market. This year, the company announced its withdrawal from the U.K., European, and Australian markets and cut 25% of its workforce, concentrating its resources on the U.S.
$BTC
#Gemini #监管 #美国
The above does not constitute investment advice. DYOR. Trading involves risk.
A rare legal drama has unfolded in crypto over the past few days: cryptocurrency exchange Gemini and the U.S. Commodity Futures Trading Commission (CFTC), which sued it, jointly appeared before a judge to ask that a January 2025 consent order imposing a $5 million penalty be vacated.
On October 15, U.S. District Judge Alvin Hellerstein of the Southern District of New York denied the joint motion. The $5 million penalty has been paid and will not be refunded. More importantly, the permanent injunction remains in effect: Gemini is still prohibited from making false statements to the CFTC or publicly denying the facts established in the consent order.
The case dates back to 2017. In 2022, the CFTC sued Gemini, alleging that during a review of Bitcoin futures contracts that year, the company made false or misleading statements to regulators concerning issues such as prefunding, wash trading, fee rebates, and trading volume. In January 2025, just three weeks before trial, Gemini opted to settle, neither admitting nor denying the allegations.
The turning point came on May 28 this year: after a change in administration, the CFTC concluded in an internal review that “this case should never have been brought,” and joined Gemini in asking the court to vacate the judgment under Rule 60 of the Federal Rules of Civil Procedure. Gemini also argued that it had been forced to settle under regulatory pressure.
The judge’s reasoning was firm: a change in the regulatory climate does not mean a court judgment can be nullified. Gemini had voluntarily settled after “doing the math” three weeks before trial; regretting that decision afterward is not a legal basis for reopening the judgment.
The message to the entire industry is clear: even if Washington becomes more crypto-friendly, it is no “time machine”—enforcement cases that have been conclusively decided will not automatically be wiped clean just because regulators have new leadership. Companies hoping that new policies will make old fines disappear can give up on that idea.
And this injunction will follow Gemini as it shifts its focus to the U.S. market. This year, the company announced its withdrawal from the U.K., European, and Australian markets and cut 25% of its workforce, concentrating its resources on the U.S.
$BTC
#Gemini #监管 #美国
The above does not constitute investment advice. DYOR. Trading involves risk.