A U.S. federal judge rejected a joint petition by Gemini and the Commodity Futures Trading Commission (CFTC) to set aside a $5 million settlement, confirming that the original settlement order remains enforceable.
Gemini had voluntarily paid the settlement in January 2025, three weeks before a trial was scheduled to begin, and the court had issued a binding order that includes ongoing restrictions on the firm’s activities.
The judge ruled that the CFTC’s shift in enforcement priorities and alleged internal misconduct do not constitute sufficient grounds to reopen the settlement, emphasizing that procedural stability outweighs speculative policy changes.
Because the settlement was already satisfied, the court order and its associated limitations continue to bind Gemini, meaning the firm must still comply with the CFTC’s remaining requirements despite having paid the monetary penalty.
The decision underscores the difficulty of overturning settled regulatory actions and signals that similar future attempts by market participants to renegotiate past settlements are likely to face stringent judicial scrutiny.
This story was compiled by the Tradexus News Desk with the help of AI.
