CFTC Joins Gemini Motion to Vacate $5M Settlement, Admits Complaint Should Not Have Been Filed

According to a press release on Wednesday, the Commodity Futures Trading Commission (CFTC) has joined cryptocurrency exchange Gemini's motion to vacate the January 2025 consent order, including a permanent injunction. Gemini paid the full $5 million settlement in January 2025.

The CFTC stated that after a comprehensive review of the case, it concluded the original 2022 complaint against Gemini should not have been filed and would not have been under current enforcement standards. The agency acknowledged the whistleblower account lacked credibility, evidence was questionable, and its investigation improperly focused on Gemini rather than alleged fraudsters. The CFTC also noted it prevented Gemini from obtaining defense evidence and that agency personnel improperly influenced regulatory authority to create settlement leverage.