A federal judge on October 15 denied a joint request by Gemini Trust Company and the Commodity Futures Trading Commission to set aside their January 2025 consent order. The ruling leaves the order’s continuing provisions in place.
In its May announcement, the CFTC said it had joined Gemini in seeking relief after reviewing the investigation, evidence, charging decision and litigation. The agency said the complaint would not have been filed under its current enforcement standards. It sought to remove the order’s prospective provisions, including injunctive relief. The same release traced the case to June 2022 and the consent order to January 2025.
The signed court opinion, filed in the Southern District of New York, rejected relief under Federal Rule of Civil Procedure 60(b)(5) and 60(b)(6). Judge Alvin Hellerstein said later disclosure of pre-existing facts did not establish a significant post-judgment change. He also distinguished changes in enforcement priorities from a significant change in law. The underlying case concerned statements Gemini made during the CFTC’s review of a proposed Bitcoin futures contract.
The court emphasized that the CFTC still has discretion over whether to seek enforcement of the consent order. Keeping a judicial order in place and deciding how to enforce it are separate questions in the opinion.
Cointelegraph’s report likewise describes the permanent injunction as remaining intact. It bars Gemini from making false or misleading statements or omissions to the CFTC. The report connects the denial to Gemini’s voluntary decision to settle before trial and to the judge’s rejection of the agency’s changed-policy argument.