CFTC Admits 2022 Gemini Lawsuit 'Should Not Have Been Filed,' Files Joint Motion for Exemption Today

According to an announcement reported by PANews, the U.S. Commodity Futures Trading Commission (CFTC) today (May 28) admitted that its 2022 lawsuit against Gemini Trust Company LLC should not have been filed and would not be brought under current enforcement standards. The case was filed in June 2022 and settled in January 2025.

The CFTC's review identified six problems: the complaint relied primarily on a statement from an informant known to lack credibility; the investigation targeted Gemini as a victim rather than the alleged fraudster; evidence against Gemini was weak; key evidence was withheld from commissioners during the vote; litigation counsel improperly blocked Gemini's access to defensive materials; and agency personnel misused regulatory authority to pressure settlement. The CFTC stated that enforcing remaining unsatisfied settlement terms conflicts with its mission and the public interest. Both parties have jointly requested the court vacate those terms, with civil penalties and other obligations already fulfilled.