Judge Upholds Gemini’s $5M Settlement Despite CFTC Reversal
- The Commodity Futures Trading Commission (CFTC) initially sued Gemini over a proposed bitcoin futures contract in June 2022.
- Gemini settled the case in January with a $5 million penalty, without admitting or denying allegations.
- U.S. District Judge Alvin Hellerstein rejected a joint request from the CFTC and Gemini to erase the settlement on October 15.
- The judge ruled that changing enforcement priorities are insufficient to overturn a binding court order.
Despite the CFTC reversing its stance on the lawsuit, Judge Hellerstein maintained that prior circumstances justified keeping the settlement intact. The ruling emphasizes that shifts in regulatory focus do not nullify legal agreements.
Gemini remains bound by the original injunction against misleading regulators, with no return of the $5 million penalty already paid. (Source)
