CFTC and Gemini Seek to Reverse $5M Settlement in Rare Move
The U.S. Commodity Futures Trading Commission (CFTC) has filed a joint motion with Gemini Trust Company to vacate a $5 million settlement reached in early 2025. The settlement stemmed from allegations that Gemini made false or misleading statements during the 2017 review of a proposed Bitcoin futures contract. This rare reversal comes after the CFTCs internal review concluded that the original enforcement action would not align with “current standards.” The case dates back to a 2022 complaint in which the CFTC accused Gemini of misrepresenting key aspects of its trading platform, particularly its auction volumes and liquidity, during the self-certification process for a Bitcoin futures product. The allegations were based largely on a whistleblowers account that the CFTC now describes as “lacking credibility.” Despite these doubts, Gemini agreed to pay $5 million and accept an injunction against making misleading statements, without admitting wrongdoing. In its latest motion filed on May 27, 2026, the CFTC argued that maintaining the settlement‘s remaining provisions, including injunctive relief, “serves neither the CFTC’s mission nor the public interest.” Gemini has already satisfied the financial penalty, but it remains unclear whether the agency plans to refund the payment. The whistleblower claims at the heart of the case included allegations