TLDR
- CFTC joined Gemini’s May 27 motion to vacate parts of the 2025 consent order.
- The agency said the 2022 complaint should not have been filed under current standards.
- Gemini paid a $5 million penalty and agreed to an injunction without admitting fault.
- CFTC said the case relied largely on a whistleblower account it viewed as weak.
The CFTC has taken a rare step in its Gemini case. The agency joined Gemini Trust Company in a court motion to vacate part of a 2025 consent order. The move follows a review of the 2022 enforcement case. The agency said the complaint “should not have been filed” under current standards.
The case centered on Gemini’s role in a proposed bitcoin futures product from 2017. That product would use prices from Gemini’s daily bitcoin auction. The CFTC had claimed Gemini gave false or misleading information. Gemini settled in January 2025 without admitting the claims.
CFTC Backs Gemini Motion in Federal Court
The CFTC and Gemini filed a joint motion on May 27. They asked the Southern District of New York to vacate the order’s future provisions. The request follows the agency’s review of the case record.
The CFTC said it reviewed the investigation, evidence, charging choice, and litigation conduct. It also cited changes in federal digital asset policy. The agency said those changes shaped its current enforcement standards.
The commission now says continued enforcement would not serve its mission. It also said the remaining parts would not serve the public interest. The paid civil penalty remains complete, according to the filing summary.
Original Case Focused on Bitcoin Futures Product
The 2022 complaint traced back to a 2017 bitcoin futures product. Gemini worked with a Chicago futures exchange on the contract. The product would settle using prices from Gemini’s daily bitcoin auction.
The CFTC reviewed whether that auction could resist market manipulation. Later, the agency claimed Gemini gave false or misleading answers. The complaint also accused Gemini of leaving out material facts.
The agency claimed Gemini overstated auction controls and trading depth. It also said Gemini did not disclose certain fee rebates. Gemini agreed to settle but did not admit the stated claims.
Review Finds Problems in Case Process
The CFTC said its review found serious concerns in the case. It said the complaint relied largely on a whistleblower account. The agency said that account was known to be weak.
The commission also said Gemini was treated as a target despite being a fraud victim. It added that requested evidence was withheld from a commissioner. That happened while the agency voted on the complaint.
The CFTC also questioned its litigation approach during the case. It said internal talks became part of the dispute. Yet agency counsel later used privilege claims against Gemini’s defense requests.
The agency said staff also used regulatory authority to create settlement leverage. Based on those findings, the CFTC changed its position. It now joins Gemini in asking the court to vacate the remaining order terms.
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