The Commodity Futures Trading Commission asked a federal judge to vacate a $5 million settlement imposed last year on Gemini Trust Company, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss. The agency stated the case relied heavily on testimony from a whistleblower whose claims were later found to lack credibility. The move represents a reversal under President Donald Trump's administration and reflects the government's revised enforcement approach in the digital asset space.
CFTC Cites Whistleblower Credibility Issues in Motion
The CFTC stated in its court filing that its earlier case relied heavily on testimony from a whistleblower whose claims were later found to lack credibility. The agency said Gemini had actually been targeted by fraudulent conduct rather than engaging in wrongdoing. "These findings not only call into question the CFTC's enforcement process in this instance but also demonstrate the necessity of the federal government's revised enforcement approach and standards, including in the digital asset space," the agency stated.
The filing seeks to erase a Biden-era enforcement action that accused Gemini of making false or misleading statements tied to a proposed bitcoin futures product. The case had been settled shortly before Trump returned to office, with Gemini agreeing to pay a civil penalty without admitting wrongdoing. A CFTC spokesperson confirmed that Gemini would not receive a refund of the $5 million penalty despite the agency's attempt to vacate the settlement.
Winklevoss Twins Contributed to Trump Campaign and Super PAC
Cameron and Tyler Winklevoss attempted to donate $1 million each in bitcoin to Trump's 2024 presidential campaign, though the contributions were partially refunded after exceeding federal donation limits. The twins later contributed more than $1 million combined to Trump-aligned super PAC MAGA Inc. ahead of the president's inauguration, according to federal campaign finance filings.
Quintenz Nomination Withdrawn After Alleged Pressure
Brian Quintenz, Trump's original nominee to chair the CFTC, alleged earlier this year that the Winklevoss brothers had pressured White House officials to withdraw his nomination after he declined to commit to revisiting the Gemini settlement. Trump later withdrew Quintenz's nomination and selected Michael Selig to lead the CFTC instead.
Gemini Sued in 2022 Over Bitcoin Futures Statements
Gemini was originally sued by the CFTC in 2022 over statements tied to a bitcoin futures contract the exchange sought to launch in partnership with the Chicago Board Options Exchange. Regulators at the time argued the company provided misleading information during the approval process involving safeguards against market manipulation.
The case became part of a wider crackdown by US regulators on cryptocurrency firms after the collapse of several high-profile digital asset companies, including FTX and Celsius Network. Federal agencies under Biden increased enforcement actions against exchanges, lenders and token issuers while arguing that weak oversight posed risks to investors and broader financial markets.
Trump Administration Adopts Industry-Friendly Crypto Stance
The CFTC emphasized that its changing position reflects the Trump administration's broader policy shift toward cryptocurrency regulation. Since returning to office, Trump officials have moved to soften several enforcement approaches adopted during former President Joe Biden's administration, particularly involving digital asset companies.
Earlier this year, Trump signed the GENIUS Act regulating stablecoins into law during a White House ceremony attended by the Winklevoss brothers. The White House and congressional Republicans have increasingly argued that stricter regulation pushed crypto innovation overseas while weakening US competitiveness in financial technology and blockchain development.
Critics of the administration's approach have raised concerns over potential conflicts of interest involving political donations from cryptocurrency executives and investors, particularly as several federal agencies reconsider prior enforcement actions against firms connected to major Republican donors.
Gemini did not publicly comment on the latest court filing. The court has not yet ruled on the CFTC's request to vacate the settlement.
FAQ
What did the CFTC ask a federal judge to do regarding Gemini?
The Commodity Futures Trading Commission asked a federal judge to vacate a $5 million settlement imposed last year on Gemini Trust Company. The agency stated the case relied heavily on testimony from a whistleblower whose claims were later found to lack credibility.
Why was Gemini originally sued by the CFTC?
Gemini was originally sued by the CFTC in 2022 over statements tied to a bitcoin futures contract the exchange sought to launch in partnership with the Chicago Board Options Exchange. Regulators at the time argued the company provided misleading information during the approval process involving safeguards against market manipulation.
How much did the Winklevoss twins contribute to Trump's campaign and super PAC?
Cameron and Tyler Winklevoss attempted to donate $1 million each in bitcoin to Trump's 2024 presidential campaign, though the contributions were partially refunded after exceeding federal donation limits. The twins later contributed more than $1 million combined to Trump-aligned super PAC MAGA Inc. ahead of the president's inauguration.
