Court keeps $5 million Gemini penalty in place despite joint request

what happened

Gemini Trust Company and the Commodity Futures Trading Commission jointly asked a federal court in New York to vacate a consent order entered in January 2025. On October 15, 2026, US District Judge Alvin K. Hellerstein refused, finding the parties had not shown sufficient grounds under Federal Rule of Civil Procedure 60, the rule used to undo final judgments. According to Cryptobriefing.com, the judge also weighed the timing, since Gemini agreed to settle just three weeks before trial.

The order carries a $5 million civil penalty and a permanent injunction barring false or misleading statements to the CFTC. The penalty has already been paid, and no refund was sought or granted. The CFTC sued in 2022 over statements Gemini made in 2017 about a Bitcoin futures contract whose settlement relied on Gemini's auction prices. A later internal CFTC review questioned whether the complaint should have been filed and labeled Gemini a "fraud victim" in related disputes. The judge was not persuaded that this justified reopening the judgment.

why it matters

For markets, the ruling shows that a regulator's changed priorities do not automatically undo a court judgment. Gemini remains bound by the injunction, so its compliance obligations stay in force regardless of the internal review. For the broader crypto sector, including Bitcoin-linked products, the decision signals that enforcement settlements carry lasting weight even when the agency later reassesses its own case.

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