The United States Commodity Futures Trading Commission (CFTC) announced a record-breaking $17.1 billion in monetary relief for fiscal year 2024, primarily driven by high-profile cryptocurrency enforcement cases.
The agency revealed on December 5 that the sum includes $2.6 billion in civil monetary penalties and $14.5 billion in disgorgement and restitution.
The bulk of the recovery stemmed from the CFTC’s crackdown on the now-defunct crypto exchange FTX, which collapsed in November 2022.
FTX Accounted for $12.7 Billion
The FTX case alone accounted for $12.7 billion, marking the largest recovery in CFTC history.
The litigation targeted the exchange, its sister firm Alameda Research, and key executives, including founder Sam Bankman-Fried.
The settlement involved $8.7 billion in restitution for victims and $4 billion in disgorgement.
Bankman-Fried was sentenced to 25 years in prison in March, though the CFTC noted that related proceedings are ongoing.
Additional cases are being pursued against former FTX executives, including Gary Wang, Caroline Ellison, and Nishad Singh.
Binance, the world’s largest cryptocurrency exchange, was another major target of the CFTC in 2024.
The agency recovered $150 million directly from Binance founder Changpeng Zhao and imposed $1.35 billion in civil monetary penalties on the company.
Binance was also ordered to pay an additional $1.35 billion in disgorgement as part of the settlement.
Other notable cases included action against Voyager’s former CEO, Stephen Ehrlich, who was charged with commodity pool fraud and regulatory violations.
In another ruling, the CFTC secured a judgment against Seneca Ventures, a fraudulent Ponzi-like scheme that misappropriated funds through crypto derivatives and carbon offset programs.
The defendants were ordered to pay $110.9 million in penalties, $83.7 million in restitution, and $36.9 million in disgorgement.
The agency also tackled a romance scam involving $2.3 million in misappropriated customer funds intended for digital asset commodity trading.
“Misconduct in our jurisdictional markets is rarely confined, especially as these boundaries are continually being redefined by disruptive technology,” CFTC Chair Rostin Behnam said.
Trump is Considering Atkins to Take Over the SEC
As Ctyptonews reported earlier, President-elect Donald Trump is considering selecting Paul Atkins as SEC Chair.
Atkins, who previously served under SEC chairs Richard Breeden and Arthur Levitt, is “crypto savvy” and has a “deep understanding of the inner workings of the agency.”
Trump, who most recently launched his family’s crypto platform, World Liberty Financial, has regularly vowed to enact a crypto-friendly regulatory framework upon returning to the Oval Office.
As of late, the SEC has been facing growing criticism due to its “regulation-by-enforcement” approach to the crypto industry.
Critics argue that the SEC has failed to establish a clear regulatory framework for cryptocurrencies, opting instead to pursue legal action against key industry players.
A coalition of seven U.S. states has come together to challenge the Securities and Exchange Commission’s (SEC) regulation of cryptocurrency.
The states have filed an amicus brief, led by Iowa Attorney General Brenna Bird, arguing that the SEC’s attempt to regulate cryptocurrencies constitutes a “power grab” that would stifle innovation, harm the crypto industry, and exceed the agency’s authority.
The coalition includes Arkansas, Indiana, Kansas, Montana, Nebraska, with Oklahoma becoming the latest state to join.
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