Overview
- U.S. District Judge Alvin K. Hellerstein denied a joint Rule 60 motion on Oct. 15, 2026, keeping the January 2025 consent order intact and leaving the $5 million civil penalty and permanent injunction in force.
- The court said the parties did not meet the high legal standard for vacatur under Federal Rule of Civil Procedure 60 and stressed that Gemini voluntarily settled roughly three weeks before its scheduled trial in January 2025.
- The CFTC’s internal review, disclosed in May 2026, concluded the original 2022 complaint should not have been filed and flagged problems including doubts about a whistleblower’s credibility and allegations that enforcement staff withheld material from a commissioner.
- Gemini already paid the $5 million and agreed it would not seek a refund if the settlement were overturned, so the payment stays with the government while the injunction continues to restrict how Gemini may speak to the CFTC.
- The decision draws a clear line between agency policy shifts and court orders, meaning regulators can change enforcement priorities but cannot unilaterally erase a judicial settlement, which leaves lasting compliance and reputational effects for Gemini as it expands U.S. business.