The CFTC has requested to annul a 2022 settlement with Gemini, admitting the lawsuit was unfounded and criticizing previous agency methods.
The U.S. Commodity Futures Trading Commission (CFTC) has requested the federal court in the Southern District of New York to overturn a prior settlement with cryptocurrency exchange Gemini stemming from a case in 2022. The agency has acknowledged that the lawsuit was baseless.
In its statement, the CFTC criticized the methods employed by its former leadership as "inappropriate." The legal matter pertains to a settlement from January 2025, where Gemini agreed to a $5 million penalty for allegedly providing misleading information during the rollout of Bitcoin futures in 2017.
A joint memorandum submitted by both the CFTC and Gemini questions the legitimacy of the investigation. Following an internal review, the CFTC concluded that the case would not have proceeded under current enforcement standards.
The regulator outlined several issues with the investigation, including:
- dependence on an unreliable informant;
- failure to present evidence to one of the commissioners prior to the lawsuit vote;
- lack of crucial confirmations regarding the exchange's guilt;
- improper use of supervisory authority as leverage.
The CFTC has determined that Gemini was, in fact, a victim of fraud. Both parties are now seeking the court to lift any remaining restrictions and obligations associated with the case.
Additionally, it is noteworthy that in January 2026, the U.S. Securities and Exchange Commission also withdrew its lawsuit against Gemini.
Earlier this March, the Federal Court for the Southern District of New York dismissed a class action lawsuit against Uniswap and its founder Hayden Adams, which had been in progress since 2022.
