The Commodity Futures Trading Commission is asking a federal judge to throw out the $5 million settlement it reached with crypto exchange Gemini, an unusual about-face that the agency says stems from problems with the whistleblower who helped bring the case and the evidence provided.
What triggered the reversal
Court filings show the CFTC now argues that the whistleblower whose cooperation was central to the 2022 settlement lacked credibility and that key evidence in the case was unreliable. The regulator did not disclose the specific nature of the credibility issues in the public filing, but the move is highly unusual for an agency that typically defends its negotiated settlements.
The original settlement
Under the 2022 deal, Gemini agreed to pay $5 million to settle CFTC charges that it made false or misleading statements to the agency during its bid to list a bitcoin futures contract. The exchange did not admit or deny the findings but paid the penalty and agreed to cease-and-desist from future violations.
What happens next
The CFTC has asked a federal judge in New York to vacate the settlement entirely. If the judge grants the request, the case would effectively return to square one, leaving open the question of whether the agency will refile charges against Gemini or simply walk away. Gemini has not publicly responded to the CFTC’s latest filing.
The judge has not set a date for a hearing on the motion.
