CFTC Moves to Cancel Gemini Settlement, Says Case Should Not Have Been Filed
The U.S. Commodity Futures Trading Commission (CFTC) has filed a joint request with crypto exchange Gemini to nullify a $5 million settlement from January 2025. The agency now claims its own staff mishandled the case, which alleged Gemini made false statements about bitcoin futures contract manipulation risks. The CFTC stated, "the complaint should not have been filed — and would not have been under current enforcement standards." If granted by the Southern District of New York, the settlement's terms, including an injunction against future false statements, would be voided. This dramatic reversal follows the Trump administration's appointment of pro-crypto CFTC Chairman Mike Selig and the president's outreach to Gemini founders Tyler and Cameron Winklevoss. The case originated from 2017 CFTC meetings, leading to a 2022 enforcement action and the 2025 settlement.
Key facts
- CFTC files joint motion to vacate January 2025 $5 million Gemini settlement.
- Agency admits complaint should not have been filed under current standards.
- If granted, settlement terms including injunction against misleading statements voided.
- Reversal follows Trump administration's pro-crypto leadership at CFTC.
- Case stems from 2017 meetings; enforcement action initiated in 2022.