Judge Hellerstein refuses to vacate CFTC's $5m Gemini settlement

Key points

• Judge Alvin Hellerstein denied the CFTC and Gemini's joint request on 15 October to vacate their January 2025 consent order, which included a $5m penalty and a permanent injunction.
• The OCC said all nine large national banks it reviewed held policies between 2020 and September 2025 that could restrict services to digital-asset firms.

A federal judge has refused to erase the CFTC's settled enforcement case against Gemini, ruling that a change in the agency's enforcement priorities does not undo a final court order. Judge Alvin Hellerstein of the Southern District of New York denied the joint request on 15 October, leaving the January 2025 consent order in place.

The CFTC sued Gemini in 2022 over allegedly false statements during its review of a proposed Bitcoin futures contract. Gemini paid a $5m civil penalty and accepted a permanent injunction. The judge noted the exchange had litigated for more than three years before settling shortly before trial.

Separately, the OCC reported on 14 October that all nine large national banks it supervises had policies between 2020 and September 2025 that could restrict services based on lawful business activities, naming digital-asset issuers, exchanges and administrators among affected sectors. The review covered about 50,000 documents and nearly 100,000 complaints.

In London, the High Court ruled on 12 October that Chinese law governs fraud victims' claims to about 61,000 seized Bitcoin, a case tied to Zhimin Qian's conviction.

What to watch: The High Court claimants intend to appeal the choice-of-law ruling, with a further hearing expected.

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