CFTC Seeks to Vacate $5M Gemini Settlement

The Commodity Futures Trading Commission filed a joint motion with Gemini in Manhattan federal court on Wednesday asking the court to vacate a $5 million consent order reached in January 2025. The agency said its review found the original complaint “should not have been filed — and would not have been under current enforcement standards.” The filing asks the court to end ongoing obligations from the consent order, including an injunction barring Gemini from making false or misleading statements to the CFTC. The agency acknowledged Gemini has paid the $5 million fine but did not state whether the penalty will be refunded.

The matter traces to a 2022 review of a proposed Bitcoin futures contract. The CFTC previously alleged Gemini made misleading statements about auction volumes and liquidity, information the agency said was relevant to assessing the contract’s risk and approval. The earlier complaint relied heavily on allegations from a 2017 whistleblower who claimed Gemini inflated trading activity and volumes to distort user demand.

In its new filing the CFTC wrote that the whistleblower’s account was “known to be lacking in credibility.” The agency added the whistleblower’s claims were based on statements from Gemini’s former chief operating officer and a subordinate, who the CFTC said allegedly made threats against co-founders Cameron and Tyler Winklevoss and were known to lie about material facts.

The filing also describes separate fraud that harmed Gemini. The agency said two customers exploited the exchange’s preferential fee structures in a coordinated rebate-fraud scheme, admitted to defrauding Gemini of $7.5 million, and that prior leadership did not act on those admissions.

The consent order was reached in January 2025 during the final weeks of the previous administration. The filing notes messages from then-CFTC nominee Brian Quintenz in September that showed Gemini CEO Tyler Winklevoss asking whether Quintenz would review the agency’s case if confirmed; Quintenz’s nomination was later withdrawn and President Trump subsequently supported Mike Selig.

The CFTC concluded in its filing, “Accordingly, the CFTC determined that continuing enforcement of the consent order’s prospective provisions serves neither the CFTC’s mission nor the public interest.” The Manhattan federal court will consider the motion as the parties seek to unwind the consent order’s ongoing obligations and determine whether any portion of the earlier penalty should be returned.