A U.S. federal judge has refused to overturn a $5 million settlement involving cryptocurrency exchange Gemini and the Commodity Futures Trading Commission (CFTC), despite the regulator’s support for withdrawing the case.

Judge Alvin Hellerstein ruled on Thursday that the CFTC’s reversal of its earlier position did not justify canceling the settlement finalized in January 2025. He also dismissed Gemini’s contention that regulatory authorities had pressured the exchange into accepting the agreement.

Founded by Cameron and Tyler Winklevoss, Gemini has already paid the $5 million settlement. The ruling also maintains a court order barring the exchange from misleading the CFTC or publicly rejecting the settlement’s findings.

The decision highlights the limitations of the increasingly supportive approach to cryptocurrency regulation in Washington. Changes in regulatory priorities do not automatically reverse earlier judicial decisions, even when both the regulator and the company involved agree that a case should be withdrawn.

Gemini remains able to conduct business in the United States and introduce additional products. However, the exchange must continue complying with the conditions established by its 2025 settlement as it shifts its focus toward the American market.

The CFTC filed its lawsuit against Gemini in 2023, accusing the exchange of misleading regulators during a 2017 evaluation of a proposed Bitcoin futures contract. Gemini agreed to settle the dispute three weeks before the trial was scheduled to begin, without admitting or denying the allegations. The company had not responded to a request for comment on Thursday’s ruling.

In his decision, Hellerstein noted that Gemini had contested the lawsuit for approximately three years before deciding to settle shortly before trial, describing the move as a calculated choice.

Earlier this year, Gemini announced plans to withdraw from the United Kingdom, the European Union and Australia, while cutting 25% of its workforce. The company said it would redirect resources toward its U.S. operations and prediction-market business, while continuing to serve customers in Singapore.