A former chairman of the US Commodity Futures Trading Commission (CFTC) responded to the agency’s move to vacate a $5 million settlement with cryptocurrency company Gemini.
In a Wednesday motion filed in the US District Court for the Southern District of New York, the CFTC joined the Gemini Trust Company in seeking relief from the judgment of a case initially filed in June 2022. The company reached a $5 million settlement with the CFTC in January 2025 while the agency was under former US President Joe Biden.
“[T]he CFTC’s action in reversing itself on a settled case is extraordinarily unusual,” Tim Massad, a former CFTC chair and research fellow at Harvard Kennedy School, told Cointelegraph. “The explanation seems to be that the staff got it wrong, not that the law was unclear.”
According to the CFTC’s motion, the agency sought relief based on claims that a whistleblower was found “not to be credible” and evidence was concealed by the commission’s previous leadership.
The motion alleged that the whistleblower, Gemini’s former chief operating officer, made false statements related to the company’s Bitcoin futures pre-certification review. The CFTC’s complaint against Gemini included allegations that the company reported inflated trading activity and volumes, misrepresenting user demand.
“Based on the CFTC’s comprehensive review, the CFTC concurs that there were significant deficiencies in [the Division of Enforcement’s] evidence and the Complaint should not have been filed,” said the filing.
Amended motion by CFTC filed in SDNY on Thursday. Source: PACER
Although the CFTC and Securities and Exchange Commission (SEC) dropped several enforcement actions and investigations into crypto companies after Donald Trump assumed the office of the presidency, there had been no filings on the public docket in Gemini’s case since January 6, 2025.
Massad added:
“I know of nothing like this happening before, and I think the public deserves a better explanation.”
Gemini co-founders tied to the current administration
Tyler and Cameron Winklevoss, co-founders of Gemini, each donated $1 million to Trump’s 2024 election campaign. The two have also met with Trump and attended White House events, including the signing ceremony for the stablecoin-related GENIUS Act.
Source: Brian Quintenz
According to a text chain made public in September 2025 by former CFTC commissioner Brian Quintenz, Tyler Winklevoss raised the CFTC’s litigation as Quintenz was set to be considered for Trump’s nomination to head the agency. Trump later withdrew Quintenz’s nomination, leading to his pick, Michael Selig, being confirmed as chair and the agency’s current sole commissioner.
Notably, some of the language in the CFTC’s motion to vacate was similar to that in the Winklevoss text chain, including “abuse” of regulatory authority and “false whistleblower.” Cointelegraph reached out to Gemini for comment but did not receive an immediate response.