According to Decrypt, a federal judge has rejected the U.S. Comptroller of the Currency’s request to terminate a $5 million settlement agreement between the agency and cryptocurrency exchange Gemini. The decision came after the CFTC sought to withdraw from the deal amid broader concerns about enforcement priorities and allegations related to misconduct within its enforcement division. The judge determined that neither the shift in enforcement priorities nor the misconduct allegations were sufficient grounds to reopen negotiations on or void the settlement, which Gemini had signed several weeks prior to trial.
The exchange entered the agreement weeks before a scheduled trial over regulatory compliance issues. Following the settlement, the CFTC later signaled an intention to abandon the agreement. A court subsequently reviewed that intent and ruled against dropping the settlement on the basis presented by the agency. The judge’s ruling emphasizes procedural and factual thresholds; no new evidence or change in legal standard was found to justify rescinding the previously signed deal.
