US regulator moves to withdraw $5 million penalty against Winklevoss' crypto exchange

• Gemini had settled CFTC charges in January 2025 under the Biden administration, paying $5 million and agreeing to an injunction, but both parties now seek to vacate the settlement citing a shift in crypto enforcement policy under Trump.
• The CFTC and Gemini jointly claim the agency inappropriately leveraged its power by blocking approval for Gemini's prediction market platform (Gemini Titan) while the enforcement action was pending; approval was granted in December 2025.
• According to the joint filing, the CFTC investigation was based on an uncredible whistleblower and ignored that Gemini was the victim of fraud by its former chief operating officer and two customers who received fraudulent rebates.

CFTC Moves to Withdraw $5 Million Penalty Against Gemini Exchange

The U.S. Commodity Futures Trading Commission (CFTC) has asked a judge to vacate a $5 million penalty against Gemini Trust Company, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss. The regulator now acknowledges it should never have accused Gemini of making false statements regarding its bitcoin futures business.

Key Developments:

Gemini originally settled CFTC charges in January 2025 during the final weeks of the Biden administration, paying $5 million and accepting an injunction against making false or misleading statements to the regulator. However, the CFTC and Gemini have now jointly agreed to vacate the settlement, citing the agency's "new approach" to crypto enforcement under the Trump administration.

Political Context:

The Winklevoss brothers each donated $1 million in bitcoin to Trump's 2024 election campaign. Tyler Winklevoss later accused Trump's initial CFTC pick, Brian Quintenz, of attempting to stall his nomination over the lawsuit. Trump subsequently withdrew Quintenz's nomination and appointed a different chair.

Agency Misconduct Alleged:

According to joint court filings, the CFTC under Biden brought charges based on a non-credible whistleblower account. The filing states Gemini was actually the victim of fraud by its former COO and two customers who received fraudulent rebates. The CFTC allegedly leveraged its enforcement power inappropriately by withholding approval for Gemini's prediction market platform (Gemini Titan) until settlement—approval was granted in December 2025.

Outstanding Questions:

It remains unclear whether Gemini will be refunded the $5 million penalty already paid. The company has not commented on the development.