CFTC Moves to Vacate $5 Million Gemini Penalty
The U.S. Commodity Futures Trading Commission has asked a federal judge to throw out a $5 million settlement against Gemini Trust Company, CNBC reported Thursday. The regulator said it should never have brought the original case against the exchange co-founded by twins Tyler and Cameron Winklevoss.
A Settlement the CFTC Now Wants Erased
Gemini reached the original settlement in January 2025, during the final days of the Biden administration. The company paid the $5 million CFTC Gemini penalty and accepted an injunction barring it from making misleading statements to the regulator. Both parties have now jointly filed court papers requesting the agreement be rescinded entirely.
The filing goes further than simply withdrawing charges. The CFTC and Gemini jointly stated that the agency had used “inappropriate tactics” to pursue and settle the lawsuit. They argued the original case rested on a whistleblower account they now consider not credible.
Regulator Accused of Using Leverage Against Gemini
According to the joint court filing, the CFTC under the prior administration told Gemini it would not approve a new prediction market platform while the enforcement action remained active. That product, branded Gemini Titan, eventually received regulatory clearance in December 2025.
The filing also reframes who was wronged in the underlying dispute. The CFTC and Gemini now argue the exchange was itself defrauded by its former chief operating officer and two customers who received unauthorized rebates. Instead of investigating that misconduct, regulators pursued Gemini over its public statements about its bitcoin futures business.
It remains unclear whether Gemini will recover the $5 million it already paid under the now-contested agreement.
Background on the Winklevoss-CFTC Dispute
The Winklevoss brothers each donated $1 million worth of bitcoin to President Donald Trump’s 2024 campaign. The CFTC’s enforcement posture on digital assets has shifted materially since Trump took office.
Trump’s original nominee to lead the agency, Brian Quintenz, publicly accused Tyler Winklevoss of lobbying the White House to block his confirmation, citing the ongoing CFTC lawsuit. Trump subsequently withdrew Quintenz’s nomination and instead tapped Michael Selig to chair the regulator.
The Winklevoss twins first entered public life when they alleged that Mark Zuckerberg had appropriated their concept for what became Facebook. That dispute settled in 2008 for a mix of cash and equity.
Gemini did not respond to a request for comment before publication.
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