The Commodity Futures Trading Commission has asked a federal court to set aside a $5 million penalty it previously imposed on Gemini Trust Company. The regulator's motion, filed this week, seeks to vacate the fine that was part of an earlier enforcement action against the digital asset platform.
The filing does not explain why the CFTC wants to cancel the penalty. Neither the agency nor Gemini has commented beyond the court documents. The original enforcement action and the settlement that led to the fine were announced months ago, but details of the allegations have not been made public.
A rare request
Vacating a penalty after it has been announced is uncommon for the CFTC. The regulator typically defends its penalties once imposed. If the court grants the motion, the $5 million fine would be erased as if it had never existed. It is unclear whether Gemini has already paid the penalty and, if so, whether the money would be refunded.
The companies involved
Gemini Trust Company is a New York-based digital asset platform. The CFTC is the federal agency responsible for regulating commodity futures and options markets. The case is being handled in the U.S. District Court for the Southern District of New York.
What comes next
The court will now consider the CFTC's motion. A hearing has not yet been scheduled. The judge's decision will determine whether the penalty stands or is vacated.
