A federal judge in New York has refused a joint request from Gemini and the Commodity Futures Trading Commission to set aside a January 2025 consent order that fined the crypto exchange $5 million and imposed a permanent injunction.

In a ruling from the Southern District of New York, Judge Alvin Hellerstein said the reasons presented by both sides did not justify reopening the case. The request had asked the court to vacate the earlier judgment that resolved the CFTC’s lawsuit against Gemini.

Judge leaves 2025 order in place

The January 2025 consent order settled a CFTC case brought in 2022. Under that agreement, Gemini was required to pay a $5 million civil penalty.

The order also permanently barred the company from making false or misleading statements or omissions to the CFTC. By denying the new motion, the judge left both the penalty and the injunction intact.

Case stemmed from bitcoin futures review

The underlying lawsuit accused Gemini of making false or misleading statements of material fact to CFTC staff. Those alleged statements were tied to the agency’s review of a proposed bitcoin futures contract.

The consent order ended that dispute without a trial after the regulator and the company reached a settlement.

Joint bid argued priorities had changed

Gemini and the CFTC jointly asked the court on May 28, 2026 to vacate the consent order. In that filing, they argued that the complaint should not have been brought and said enforcement priorities had shifted.

Gemini also argued that it agreed to settle under regulatory pressure. The bid was unusual in that both the regulator and the company asked the court to undo an order they had previously accepted.

Court says settlement was a deliberate choice

Judge Hellerstein found those arguments insufficient. According to the ruling, the facts now cited by the parties were already known before the settlement was reached.

The judge also pointed to the timing of the agreement, saying Gemini made a calculated decision to settle shortly before trial. The source article states the company entered into the deal about three weeks before the trial was set to begin.

For now, the confirmed outcome is that the 2025 judgment remains in force. No further step beyond the denial of the motion was identified in the source report.

Source: www.theblock.co