The US Commodity Futures Trading Commission filed a joint motion with Gemini in Manhattan federal court on May 28, 2026, to vacate a $5 million settlement and reverse its enforcement action against the crypto exchange, claiming the underlying complaint was based on flawed whistleblower allegations.
The CFTC’s reversal centers on a 2017 whistleblower account that the agency now characterizes as unreliable. In a statement, the CFTC said the complaint “should not have been filed — and would not have been under current enforcement standards” and was “largely based on a whistleblower’s account known to be lacking in credibility.”
Gemini settled with the CFTC in January 2025 after the agency accused the exchange of making false or misleading statements related to a Bitcoin futures contract. The original complaint alleged Gemini made misleading claims in 2022 regarding auction volumes and liquidity during Bitcoin futures contract review. The complaint relied on the 2017 whistleblower, who alleged Gemini inflated trading activity to distort user demand. That whistleblower’s allegations were based on statements from Gemini’s former chief operating officer and a subordinate.
The CFTC now argues that Gemini was itself a victim of fraud. Two customers exploited preferential fee structures through a coordinated rebate-fraud scheme that defrauded Gemini of $7.5 million, the agency said.
In its motion, the CFTC stated that “continuing enforcement of the consent order’s prospective provisions serves neither the CFTC’s mission nor the public interest” and that “applying the remaining provisions — including injunctive relief — prospectively would not be equitable.”
Political backdrop
The reversal occurs amid a broader pattern of crypto-related lawsuits and investigations being abandoned under the Trump administration. In September, Brian Quintenz, Trump’s former CFTC chair nominee, received messages from Tyler Winklevoss, Gemini co-founder, asking whether Quintenz would review the agency’s case against Gemini if appointed chair. Trump later withdrew Quintenz’s nomination and backed Mike Selig, a former lawyer for crypto companies, as his CFTC chair nominee instead.
Tyler Winklevoss and his twin brother Cameron Winklevoss, both Gemini co-founders, each donated $1 million to Trump’s 2024 election campaign.
The CFTC’s motion does not explicitly state whether the agency will refund the $5 million fine Gemini paid in January 2025. It remains unclear whether the settlement’s retrospective provisions, including the penalty already collected, will remain in effect pending the court’s decision.
