CFTC and Gemini File Joint Motion to Reverse $5 Million Settlement

May 28, 2026

The CFTC and Gemini jointly filed a motion in Manhattan court on May 28, 2026 to vacate a $5 million settlement from January 2025 related to alleged false statements about a Bitcoin futures contract. The CFTC now argues the complaint was based on a whistleblower lacking credibility and should not have been filed under current standards. Two customers had admitted defrauding Gemini of $7.5 million through a rebate-fraud scheme.

CFTC settlement reversal

▪The US Commodity Futures Trading Commission concluded that the complaint against Gemini should not have been filed and would not have been under current enforcement standards.
▪The US Commodity Futures Trading Commission's settlement with Gemini included an injunction barring Gemini from making false or misleading statements to the agency.
▪The US Commodity Futures Trading Commission accused Gemini of making false or misleading statements related to a Bitcoin futures contract.
▪Gemini has already paid a $5 million fine to the US Commodity Futures Trading Commission.
▪Gemini settled with the US Commodity Futures Trading Commission and paid a $5 million fine in January 2025.
▪The US Commodity Futures Trading Commission filed a joint motion with Gemini in a Manhattan court on May 28, 2026 seeking to vacate a $5 million settlement.

Trump administration policy shift

▪Donald Trump withdrew Brian Quintenz's nomination for US Commodity Futures Trading Commission chair and instead backed Mike Selig.
▪Tyler Winklevoss donated $1 million to Donald Trump's election campaign in 2024.
▪Mike Selig is a former lawyer for crypto companies who has taken a supportive stance toward the crypto industry.
▪The US Commodity Futures Trading Commission and the Securities and Exchange Commission have abandoned a string of crypto lawsuits and investigations under US President Donald Trump.
▪Tyler Winklevoss asked Brian Quintenz in September if Brian Quintenz would review the US Commodity Futures Trading Commission's case against Gemini if Brian Quintenz were made chair.

Whistleblower credibility issues

▪The US Commodity Futures Trading Commission complaint against Gemini relied on allegations from a whistleblower in 2017 who claimed that Gemini inflated trading activity and volumes to distort user demand.
▪The US Commodity Futures Trading Commission complaint against Gemini was largely based on a whistleblower's account known to be lacking in credibility.
▪The whistleblower's allegations against Gemini were based on statements from Gemini's former chief operating officer and a subordinate who allegedly made threats against Cameron and Tyler Winklevoss.
▪Gemini's former chief operating officer and a subordinate were allegedly known to lie about material facts.

Gemini fraud victimization claims

▪The US Commodity Futures Trading Commission alleged that past leadership did nothing with the admissions that two customers defrauded Gemini of $7.5 million.
▪The US Commodity Futures Trading Commission argued that Gemini was a victim of fraud in which two customers exploited Gemini's preferential fee structures through a coordinated rebate-fraud scheme.
▪Gemini allegedly made misleading statements in 2022 during the review of a Bitcoin futures contract regarding auction volumes and liquidity.
▪Two customers admitted defrauding Gemini of $7.5 million through a rebate-fraud scheme.

Perspective of CFTC under new administration

▪The US Commodity Futures Trading Commission complaint against Gemini was largely based on a whistleblower's account known to be lacking in credibility.
▪The US Commodity Futures Trading Commission concluded that the complaint against Gemini should not have been filed and would not have been under current enforcement standards.