The U.S. Commodity Futures Trading Commission (CFTC) has requested a judge to nullify a $5 million fine imposed on the cryptocurrency exchange Gemini Trust Company. The CFTC contends that the allegations of false statements regarding Gemini's bitcoin futures operations were unfounded.
On Wednesday, the CFTC and Gemini jointly submitted documents aiming to revoke a settlement from January 2025, which was established during the administration of former President Joe Biden. Under this agreement, Gemini paid a civil penalty of $5 million and accepted an injunction prohibiting any misleading statements to the agency.
Both the CFTC and Gemini argue that the settlement should be annulled due to the agency's shift in its approach to cryptocurrency enforcement during President Donald Trump's tenure.
In their filing, the CFTC and Gemini accused the agency of employing “inappropriate tactics” to initiate the lawsuit and to secure a settlement from Gemini.
Furthermore, they claimed that the lawsuit was based on an unreliable whistleblower account.
The filing indicated that Gemini had actually fallen victim to fraud involving its former Chief Operating Officer and two clients who allegedly received fraudulent rebates.
Instead of investigating the fraud against Gemini, the CFTC focused on claims that the company made misleading statements regarding the integrity of its bitcoin futures trading, as stated in the joint court documents.
Additionally, the court papers suggested that regulators warned Gemini that it would not obtain approval for a new prediction market platform as long as the enforcement action was ongoing. However, Gemini eventually received approval for its prediction market product, Gemini Titan, in December 2025.
It remains uncertain from the court documents whether Gemini will be reimbursed for the $5 million penalty already paid.
Gemini was co-founded by twin brothers Tyler and Cameron Winklevoss, who each contributed $1 million in bitcoin to Donald Trump’s 2024 presidential campaign.
The case has also become embroiled in a leadership dispute within the CFTC. Former CFTC chair nominee Brian Quintenz accused Tyler Winklevoss last year of lobbying the White House to obstruct his nomination due to the agency's lawsuit against Gemini.
Ultimately, Trump withdrew Quintenz’s nomination and appointed Michael Selig to lead the CFTC.
The Winklevoss twins rose to fame after suing Mark Zuckerberg, alleging he stole their concept for Facebook. This dispute was resolved in 2008 with a settlement involving cash and stock.