A U.S. federal court has rejected a joint appeal by cryptocurrency exchange Gemini and the Commodity Futures Trading Commission (CFTC) seeking to overturn a $5 million settlement, despite the regulator’s acknowledgment that the original lawsuit should not have been brought.
Judge Alvin Hellerstein ruled on Thursday that the CFTC’s reversal of its earlier position was insufficient to invalidate the agreement Gemini reached in January 2025. He also dismissed the exchange’s argument that regulatory pressure had compelled it to settle the case.
Gemini, founded by Cameron and Tyler Winklevoss, has already paid the $5 million penalty. The ruling also preserves a court order that prevents the exchange from misleading the CFTC or publicly denying the settlement’s findings.
The decision underscores that changing regulatory priorities in Washington do not automatically overturn previous court rulings. Even when a government agency and a company agree that a case should be withdrawn, an existing settlement cannot necessarily be undone.
Gemini can continue operating in the United States and introducing new products, but it must still comply with the conditions established under its 2025 settlement. The ruling comes as the exchange increasingly directs its business strategy toward the American market.
The CFTC filed its lawsuit against Gemini in 2023, alleging that the company misled regulators during a 2017 assessment of a proposed Bitcoin futures contract. The exchange settled the dispute three weeks before the trial was due to begin, without admitting or denying the allegations. Gemini had not issued a response to a request for comment on Thursday’s ruling.
In his decision, Hellerstein noted that Gemini had contested the case for approximately three years before ultimately choosing to settle shortly before trial, describing the move as a calculated decision.
Earlier this year, Gemini announced plans to leave the United Kingdom, the European Union and Australia while reducing its workforce by 25%. The company said it would concentrate more resources on the U.S. market and prediction-market services, while maintaining its operations in Singapore.
