The U.S. Commodity Futures Trading Commission (CFTC) has requested a judge to vacate its previous $5 million fine against Gemini Trust. The case originally centered on statements related to Gemini’s Bitcoin futures business; now, both regulators and the company are jointly seeking to overturn the settlement, signaling a shift in U.S. cryptocurrency enforcement approaches.
CFTC and Gemini jointly apply
According to court filings submitted by both parties, the CFTC believes that Gemini should not have been charged with making false statements. In January 2025, Gemini reached a settlement with regulators, paying a $5 million fine and accepting an injunction agreeing not to make false or misleading statements to the CFTC.
Today, the CFTC and Gemini jointly request the court to dismiss this settlement. The filings state that the regulators used inappropriate means at the time to advance the litigation and secure the settlement.
The case points to enforcement during the Biden administration.
Both parties stated in the document that this lawsuit is based on the claims of an unreliable whistleblower. The document also alleges that Gemini was itself a victim of fraud by the company’s former Chief Operating Officer and two clients, who profited through fake rebates.
Court documents state that regulators did not prioritize investigating fraud allegations against Gemini, instead focusing on whether Gemini made misleading statements regarding the integrity of its bitcoin futures trading business.
Prediction market approval has been documented.
Both parties also stated that during the legal proceedings, regulators informed Gemini that the company could not receive approval for its new prediction market platform as long as the enforcement action was ongoing. Gemini’s prediction market product, Gemini Titan, was ultimately approved in December 2025.
It is unclear whether the $5 million paid by Gemini will be refunded. Gemini has not provided further comment on the matter.
This latest move also reflects a shift in the CFTC’s enforcement approach toward the crypto industry during the Trump administration. The report notes that Gemini was founded by the Winklevoss brothers, who each donated $1 million in Bitcoin to Trump’s 2024 campaign.
Additional information: The report also noted that Trump initially nominated Brian Quintenz to lead the CFTC but later withdrew the nomination and appointed Michael Selig as the agency’s chair.