The Commodity Futures Trading Commission on Wednesday joined Gemini Trust Company LLC in a motion for relief from judgment in the U.S. District Court for the Southern District of New York, seeking to vacate the prospective provisions of a January 2025 consent order.
The order stemmed from a June 2022 CFTC complaint alleging Gemini made false or misleading statements during the self-certification process for a bitcoin futures product. In January 2025, Gemini agreed to a consent order that included a permanent injunction and a $5 million civil penalty.
The CFTC said it reviewed the investigation and concluded the complaint “should not have been filed, and would not have been under current enforcement standards.” The agency said the case relied heavily on a whistleblower it knew lacked credibility, raised serious questions about evidence strength, and exposed internal process problems in how the matter was pursued.
The non-prospective provisions of the order, including the $5 million penalty, have already been satisfied. The joint motion targets the remaining forward-looking restraints, including injunctive relief, which the CFTC said it would not be equitable to enforce.
The agency framed its review as part of wider changes in federal digital asset enforcement policy across multiple government agencies.
