US Court Rejects CFTC, Gemini Request to Void $5 Million Settlement
Summary
- A U.S. federal court rejected a request by the CFTC and Gemini to void a $5 million settlement.
- The court said changes in the CFTC's enforcement policy and allegations of misconduct during the investigation were not enough to overturn the settlement reached in January last year.
- The court said Gemini voluntarily entered into the settlement despite being aware of the issues before trial, and that changes in the digital-asset regulatory stance could not justify canceling the agreement.
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A U.S. federal court has rejected a joint request by the Commodity Futures Trading Commission and digital-asset exchange Gemini to void a $5 million settlement.
Cointelegraph reported on Oct. 16 that U.S. District Judge Alvin Hellerstein ruled changes in the CFTC's enforcement policy and allegations of misconduct during the investigation were not enough to overturn the settlement reached in January last year.
The CFTC and Gemini jointly asked in May to cancel the agreement, arguing that regulators exerted improper pressure during the investigation and obstructed the disclosure of evidence. The CFTC also said it would not have filed the case under its current regulatory standards.
The court, however, emphasized that Gemini entered into the settlement voluntarily even though it was aware of the issues before trial. It also held that the Trump administration's shift in digital-asset regulatory policy since taking office could not serve as grounds to void the existing agreement.
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