CFTC Unexpectedly Reverses Gemini Settlement Decision Amid New Evidence

The US Commodity Futures Trading Commission (CFTC) has taken an unexpected step by vacating a $5 million settlement with Gemini, citing new information that came to light after the initial decision. The CFTC's motion, filed in court on Wednesday, claims that a whistleblower's credibility was questioned and evidence was concealed by previous leadership.

Tim Massad, a former CFTC chair, described this move as 'extraordinarily unusual'. He stated that the explanation provided is that the staff made mistakes, not that the law was unclear. The CFTC's motion alleges misconduct by the whistleblower and concealment of evidence by the previous leadership.

The case against Gemini initially resulted in a $5 million settlement in January 2025 while the agency was under former US President Joe Biden. However, with Donald Trump assuming office, several enforcement actions and investigations into crypto companies were dropped, including this case.