CFTC Faces Reversal: Gemini's $5 Million Penalty in Limbo

The U.S. Commodity Futures Trading Commission (CFTC) is requesting a judge to overturn a prior court order that imposed a $5 million penalty on Gemini Trust Company, a cryptocurrency exchange founded by the Winklevoss twins.

The CFTC admitted that Gemini should not have been accused of making false statements about its bitcoin futures business. Despite agreeing to the penalty in 2025, both parties have now requested the settlement be vacated due to the CFTC's revised crypto enforcement policies under President Trump.

The Winklevoss brothers, known for their legal battle with Mark Zuckerberg, are accused of exerting influence over the CFTC. The agency, previously led by a Trump appointee, faced criticism for using coercive tactics against Gemini. The case highlights controversies in the regulatory landscape of cryptocurrency trading.

(With inputs from agencies.)