The Commodity Futures Trading Commission (CFTC) has joined crypto exchange Gemini's motion for relief from a prior judgment stemming from the agency's 2022 enforcement action.
On Wednesday, the two jointly filed a motion requesting the federal judge to vacate the January 2025 consent order against Gemini, including a permanent injunction.
In a press release, the CFTC wrote that it has conducted a comprehensive review of the case, including its history, evidence, litigation tactics, and changes in the federal digital asset policy.
"As a result, the CFTC concluded the complaint should not have been filed — and would not have been under current enforcement standards," CFTC wrote in the release.
The CFTC sued Gemini in June 2022 for allegedly making "false or misleading statements" to the agency in 2017 about the risk of manipulation in its bitcoin futures contract. As a result, Gemini agreed to pay $5 million in January 2025 to settle the case and paid in full, according to Wednesday's joint motion.
The exchange, led by the Winklevoss twins, pushed back in June that year, filing a letter of complaint with the CFTC Inspector General alleging it was targeted in an "abusive investigation and lawfare."
Now, Gemini and the CFTC are jointly seeking relief from the original court judgment.
In Wednesday's statement, the CFTC said the complaint was based on a whistleblower's account that lacked credibility and that the evidence presented against Gemini was questionable. The agency also said the investigation improperly focused on Gemini rather than the alleged fraudsters.
Furthermore, the agency acknowledged that Gemini was prevented from obtaining evidence to defend itself, and the CFTC's personnel "improperly influenced" its regulatory authority to create settlement leverage.
"These findings not only call into question the CFTC's enforcement process in this instance but also demonstrate the necessity of the federal government's revised enforcement approach and standards, including in the digital asset space," the release said.
This development follows the appointment of Michael Selig as CFTC chairman, who took the helm after the White House dropped its previous nominee, Brian Quintenz.
Last September, shortly before his nomination was officially withdrawn, Quintenz publicly alleged that Gemini co-founder Tyler Winklevoss had lobbied President Donald Trump against him. According to Quintenz, the pushback came after he refused to take sides in the CFTC's legal battle with Gemini.
Meanwhile, a New York Times investigation published last Sunday said that CFTC career officials who raised concerns about three crypto businesses tied to the Trump family — Polymarket, Crypto.com, and Gemini-affiliated prediction market Gemini Titan — were pushed out of the agency.
The White House has since pushed back on the report, saying that there were no conflicts of interest.
Chair Selig remains the CFTC's sole commissioner as Trump has not yet nominated replacements for the four vacant seats. The CFTC is also seeking exclusive regulatory authority over prediction markets, with the White House currently reviewing proposed rules from the agency for such platforms.
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