A federal judge in New York denied a joint motion from Gemini and the CFTC to vacate a 2025 consent order that imposed a 5 million dollar civil penalty and permanent injunction. Judge Alvin K. Hellerstein ruled on October 15, 2026 that the two parties failed to meet the strict requirements for vacatur under Federal Rule of Civil Procedure 60. The CFTC had conducted an internal review suggesting that the original 2022 lawsuit, which alleged false or misleading statements regarding a Bitcoin futures contract, should not have been filed. The 5 million dollar penalty has already been paid, but the injunction prohibiting Gemini from making false or misleading statements to the CFTC remains in effect. This ruling establishes that policy shifts by an agency cannot retroactively erase a judgment issued by a court.
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