CFTC, Gemini Ask Court to Scrap $5 Million Settlement and Dismiss Case

The Commodity Futures Trading Commission and crypto exchange Gemini have jointly asked a court to void their previous $5 million settlement and throw out the case.

CoinDesk reported on May 27 that the CFTC and Gemini recently filed a motion in the U.S. District Court for the Southern District of New York seeking to cancel the agreement reached last year and dismiss the case itself.

The CFTC now says the agency should not have brought the lawsuit against Gemini in the first place.

In a statement, the regulator said its review found the case should never have been filed and would not be brought under its current enforcement standards.

Gemini agreed in January to pay a $5 million fine and comply with other terms to settle the CFTC's enforcement action. The matter began with allegations that Gemini made false or misleading statements in 2017 about the potential manipulation of a Bitcoin futures product.

The CFTC later filed a formal lawsuit against Gemini in 2022.

If the court grants the request, the earlier settlement terms imposed on Gemini would also be voided. Those terms included a prohibition on making false or misleading statements to the CFTC in the future.

CoinDesk said the CFTC's stance on crypto has shifted sharply since President Donald Trump took office. Mike Selig, now a CFTC commissioner, has made support for the digital-asset industry a key policy priority.