A federal judge in Manhattan has declined to overturn a $5 million settlement reached between the Commodity Futures Trading Commission (CFTC) and Gemini Trust Co., a cryptocurrency exchange founded by Cameron and Tyler Winklevoss.

U.S. District Judge Alvin Hellerstein, appointed by President Bill Clinton, issued the ruling on Thursday, stating that the CFTC and Gemini had not demonstrated sufficient grounds to set aside the 2025 agreement. The original settlement resolved litigation stemming from allegations that Gemini made false or misleading statements during the CFTC’s review of a proposed bitcoin futures contract.

The CFTC initially filed suit against Gemini in 2022, accusing the exchange of providing inaccurate information related to the agency’s evaluation of the futures product. The terms of the settlement included a $5 million payment by Gemini but allowed the company to avoid admitting wrongdoing.

Both the CFTC and representatives for Gemini declined to comment following the recent ruling. The case underscores ongoing regulatory scrutiny of cryptocurrency platforms, particularly regarding disclosures and statements made during product approval processes.

Judge Hellerstein’s decision maintains the status quo, requiring Gemini to uphold the financial terms agreed upon without reopening the legal challenge. The ruling reflects the court’s view that the evidentiary threshold to reverse settlements is high, especially when both parties consented to the resolution initially.

As cryptocurrency markets continue to expand, regulatory agencies like the CFTC are increasingly focused on ensuring transparency and compliance among trading platforms, with enforcement actions serving as a key tool in their oversight efforts.