A federal judge has rejected an unusual joint request by the Commodity Futures Trading Commission and Gemini Trust to vacate the consent judgment that ended their long-running bitcoin-futures case. The $5 million penalty and permanent injunction remain in place.
U.S. District Judge Alvin Hellerstein ruled on October 15 that the parties had not met the legal standard for reopening the judgment, Reuters reported. Gemini had contested the case for more than three years, then voluntarily settled shortly before trial in January 2025. reuters.com
The CFTC and Gemini changed positions together in May. Their amended joint motion argued that an internal review undermined the original enforcement theory and that the case would not have been brought under the agency’s current priorities. Gemini did not seek repayment of the $5 million it had already paid, but the parties wanted the remaining injunction and related provisions removed.
The underlying 2022 CFTC complaint alleged false or misleading statements during the regulator’s review of a proposed bitcoin futures contract that would have relied on Gemini auction prices. The court’s refusal to vacate does not add a new finding about the merits. It preserves the judgment Gemini previously accepted.
TOKEN RECON ASSESSMENT
Agency policy can change faster than a final federal judgment. The ruling limits the ability of a regulator and defendant to erase a completed enforcement outcome merely because both later prefer a different policy. For crypto companies reviewing older consent orders, the practical signal is that political alignment and agency reconsideration may not satisfy Rule 60. An appeal or renewed motion with materially different grounds would be the next legal confirmation point.
Sources
Reuters: Judge rejects CFTC and Gemini bid
CFTC: Amended Joint Motion and Memorandum
