Nikolas Sargeant
TL;DR
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The CFTC has joined crypto exchange Gemini in seeking to vacate a 2025 consent order tied to a 2022 enforcement case, marking a rare reversal by the regulator.
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After an internal review, the agency said the original complaint “should not have been filed,” citing weak evidence, a questionable whistleblower account, and procedural concerns.
CFTC and Gemini Jointly Seek Relief From 2025 Consent Order
The Commodity Futures Trading Commission (CFTC) has joined crypto exchange Gemini in filing a motion to vacate a prior federal court judgment tied to a 2022 enforcement case.
On Wednesday, both parties jointly asked a federal judge to overturn a January 2025 consent order that included a permanent injunction against the exchange.
The request also follows Gemini’s earlier $5 million settlement payment, which the company had already completed in full.
In a notable reversal, the CFTC said it concluded after a comprehensive internal review that the original complaint should not have been brought.
The agency said the case review covered historical evidence and litigation strategy, changes in federal digital asset enforcement policy, and assessment of investigative conduct and witness credibility
According to the CFTC, the complaint relied heavily on a whistleblower account that lacked credibility and should not have formed the basis of an enforcement action.
Original 2022 Allegations Against Gemini
The CFTC originally sued Gemini in June 2022, alleging the exchange made “false or misleading statements” in 2017 regarding the risk of manipulation in its Bitcoin futures contract.
The case centered on whether Gemini misrepresented information during regulatory engagement tied to its derivatives market operations.
Gemini, led by the Winklevoss twins, had long pushed back against the case. In 2023, the exchange filed a complaint with the CFTC Inspector General, accusing the agency of conducting an “abusive investigation and lawfare.”
In its latest statement, the CFTC acknowledged concerns that Gemini was denied access to potentially relevant evidence. CFTC added that the agency personnel may have improperly influenced enforcement leverage, and the investigation was disproportionately focused on Gemini rather than the alleged fraud actors
The agency said these findings raised broader concerns about past enforcement practices in digital asset cases.
The CFTC emphasized that its review reflects a broader shift in enforcement standards for digital assets, suggesting more cautious regulatory approaches going forward.
The statement also implied that prior enforcement methods in crypto-related cases may need restructuring under updated federal guidelines.
The development comes amid leadership changes at the CFTC, now led by Michael Selig, following the withdrawal of Brian Quintenz’s nomination. The agency currently has only one commissioner, with other seats still vacant.
At the same time, the CFTC is pushing for expanded authority over prediction markets, while the White House reviews proposed regulatory frameworks for the sector.
In December, Gemini gained CFTC approval to offer U.S. prediction markets, making it one of the few CFTC-regulated platforms allowed to offer event contracts in the country.
