Overview
- The CFTC and Gemini filed a joint motion in federal court, which they submitted Wednesday, May 27, 2026, asking the U.S. District Court for the Southern District of New York to vacate the consent order’s prospective provisions.
- The agency’s internal review found the 2022 complaint relied heavily on a whistleblower account that staff now judge to lack credibility and identified withheld evidence and aggressive tactics by enforcement lawyers.
- The CFTC says Gemini was itself a victim of a rebate-fraud scheme involving a former COO and two customers who admitted defrauding the exchange of about $7.5 million, shifting the factual frame of the earlier case.
- Gemini paid the $5 million civil penalty in the January 2025 settlement and the motion seeks to remove ongoing injunctions and limits on future statements, but the filing makes no clear claim that the fine will be refunded.
- If the judge grants the request it could encourage other crypto firms that settled under prior enforcement approaches to seek relief, yet the court’s ruling will determine the legal precedent and practical remedies.