BlockBeats News, May 28, the U.S. Commodity Futures Trading Commission (CFTC) has requested a federal court to vacate its $5 million settlement agreement with the cryptocurrency exchange Gemini, stating that the original enforcement action was based on flawed charges.

The CFTC jointly filed a motion with Gemini on Wednesday to dismiss the settlement. The agency stated that after a review, it was concluded that the previous suit (during the Biden administration) "should not have been brought and would not be brought under current enforcement standards." The CFTC noted that the lawsuit relied primarily on statements from a "known unreliable" whistleblower, and continuing the forward-looking terms in the settlement does not align with the CFTC's mission or the public interest.

The case stemmed from allegations that Gemini made misleading statements in 2022 about the trading volume and liquidity of Bitcoin futures contracts. The CFTC now states that the whistleblower's accusations were based on statements from individuals including Gemini's former COO, who is alleged to have threatened the Winklevoss brothers and had a habit of distorting facts. Furthermore, the CFTC also pointed out that Gemini was a victim of fraud, with two customers defrauding it of $7.5 million through a coordinated rebate scam that went unaddressed by the organization's former leadership.

In January 2025, Gemini had already paid a $5 million fine, and it is currently unclear if this fine will be refunded. This motion to dismiss continues the trend seen during the Trump administration, where the CFTC and SEC dropped multiple crypto-related suits. Gemini's co-founders, the Winklevoss brothers, each donated $1 million to the Trump campaign in 2024. Current CFTC Chairman Mike Selig, a former crypto company attorney, has been supportive of the industry. The motion aims to terminate Gemini's ongoing obligations in the settlement agreement, including a prohibition on making false or misleading statements to the agency.