Judge Rejects Gemini-CFTC Bid to Undo $5 Million Settlement

Settlement Remains Locked in Place

A federal judge rejected a joint motion from Gemini and the CFTC to modify or lift restrictions from their finalized $5 million settlement. Gemini has already paid the penalty in full. The court's ruling preserves a permanent injunction against the exchange and enforces a requirement that Gemini refrain from publicly denying any of the case's findings or admissions.

The Permanence Principle

The decision underscores that once a settlement is finalized and executed—particularly when a penalty has been paid—courts are reluctant to unwind the agreement even when both parties jointly request relief. This principle limits the practical ability of regulatory settlements to shift retroactively in response to policy changes or new administrations, constraining the leverage either party might otherwise hold.

What the Restrictions Mean

Gemini faces ongoing compliance obligations under the injunction and cannot make public statements that contradict the settlement's underlying findings. The court's refusal to carve out exceptions suggests that finalized settlements, once accepted and performed, carry durable force independent of shifting regulatory priorities or enforcement philosophy.