US Regulator Seeks to Erase $5 Million Penalty Against Cryptocurrency Exchange

The US Commodity Futures Trading Commission (CFTC) has made a dramatic U-turn in its enforcement action against cryptocurrency exchange Gemini. In 2022, the agency accused Gemini of making false and misleading statements about a Bitcoin futures business it planned to launch. However, after an extensive review of its investigation, the CFTC has admitted that the original enforcement action was unjust.

The joint request filed by the CFTC seeks to vacate the $5 million penalty imposed on Gemini in 2022. The agency's admission of fault and decision to wipe the legal slate clean raises questions about what happens to the $5 million fine. A spokesperson for the CFTC clarified that both Gemini and the agency have agreed not to refund the money.