CFTC and Gemini seek to void $5M settlement after review

CFTC and Gemini seek to vacate a $5M settlement, citing flawed evidence and enforcement errors. The regulator now views Gemini as a fraud victim, not a perpetrator.

The U.S. Commodity Futures Trading Commission (CFTC) and Gemini Trust Company have jointly requested that federal courts vacate a $5 million settlement and related injunctions from a 2022 enforcement action. An internal CFTC review revealed that the original complaint against Gemini relied on testimony from a whistleblower who was later found not credible. Additionally, the review determined that CFTC personnel misused regulatory authority during settlement negotiations. The findings concluded that Gemini was actually a victim of fraud, not a perpetrator, and that the complaint would not have been filed under current enforcement standards. If the court approves the motion, Gemini’s remaining obligations under the settlement, including the injunction, will be erased. This development marks a significant shift in the CFTC’s enforcement approach and reflects broader changes in federal digital asset policy.