Image Credit: Shutterstock
CFTC Chair Michael Selig said the agency’s Gemini case was part of an enforcement push the current leadership believes was wrongly brought.
His comments came days after the regulator and Gemini jointly asked a federal judge to unwind the remaining terms of the crypto exchange’s $5 million settlement. Selig said the agency is trying to start fresh and reverse cases it no longer supports.
CFTC and Gemini Seek to Vacate 2025 Order
The legal move came last week in the Southern District of New York. The CFTC and Gemini jointly asked the court to vacate the January 2025 consent order tied to the case.
The agency now says the case should never have been filed and would not be pursued under its current enforcement standards. The original case accused Gemini of making false or misleading statements during the CFTC’s review of a bitcoin futures contract tied to the Gemini Bitcoin Auction.
Gemini’s $5M Penalty Will Not be Refunded
Gemini settled the case in January 2025 by paying a $5 million civil penalty. The exchange also accepted a permanent injunction as part of the consent order.
The current request focuses on removing the remaining legal terms of that order, not reopening the penalty payment. Gemini will not recover the $5 million, as the parties agreed the penalty already paid would not be refunded.
Agency Cites Flawed Whistleblower Account
The CFTC said its internal review found serious problems with the case. In its press release, the agency said the complaint was largely built on a whistleblower account known to have credibility issues.
It also said Gemini was the victim of fraud by its former chief operating officer and two customers. The agency further said enforcement staff used inappropriate tactics during the investigation, litigation and settlement process.
Titan Application Cited as Settlement Leverage
The filing also says staff used Gemini’s separate Titan application as pressure while the enforcement action was pending.
Internal messages cited in court filings showed market oversight staff had completed their review and recommended approval before enforcement personnel intervened. Gemini Titan was later approved in December 2025.
Court Must Approve Gemini Order Reversal
The Southern District of New York still has to decide whether to vacate the remaining terms of the consent order.
The immediate issue is whether the court agrees to remove the injunction and related legal obligations while leaving the $5 million penalty in place. Selig’s comments add political framing to a court request built around evidentiary and procedural concerns.
