U.S. judge rejects Gemini’s appeal to void $5 million settlement despite CFTC backing
A U.S. federal judge rejected Gemini's appeal to void its $5 million settlement with the CFTC, even though the CFTC had reversed its stance on the case. The ruling emphasizes that a shift towards friendlier crypto regulation is not retroactive and does not automatically undo prior court judgments. Gemini, which has already paid the fine, must adhere to the settlement terms as it focuses its business on the U.S. market.
Why it matters
This decision sets a precedent for crypto regulation, indicating that past legal judgments against crypto firms will stand regardless of evolving regulatory sentiment, impacting how companies navigate compliance and legal challenges in the U.S. market.
Federal Judge Alvin Hellerstein ruled Thursday that the CFTC’s decision to reverse its position on the case was not enough to undo Gemini’s January 2025 settlement. He also rejected Gemini’s argument that it had been coerced into settling by regulators.
Gemini, founded by Cameron and Tyler Winklevoss, has already paid the $5 million. The ruling also keeps the exchange under a court order prohibiting it from misleading the CFTC or publicly denying the settlement's findings.
The decision is significant because it shows that a friendlier approach to crypto regulation in Washington D.C. is not retroactive. It does not automatically erase earlier court judgments, even though the regulator and the company agree they should be withdrawn.
Gemini can still operate in the U.S. and introduce new products, but the ruling means it must live with the terms of its 2025 settlement as it shifts its business toward the American market.
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