CFTC Secures Record $17.1 Billion in Crypto Enforcement Actions for 2024

In a recent announcement, the U.S. Commodity Futures Trading Commission (CFTC) revealed a record $17.1 billion in financial relief for the 2024 fiscal year, a significant portion of which came from enforcement actions tied to the cryptocurrency sector.

The relief package included $2.6 billion in civil monetary penalties (CMP) and an impressive $14.5 billion in disgorgement and restitution. Much of this recovery stemmed from the CFTC’s aggressive pursuit of justice following the collapse of cryptocurrency exchange FTX in November 2022.

The FTX case alone contributed to the majority of the recovery, with $12.7 billion in restitution and disgorgement, marking the largest settlement in the CFTC’s history. The agency’s actions targeted fraud allegations against FTX, its affiliate Alameda Research, and several key executives, including founder Sam Bankman-Fried. Bankman-Fried, who was sentenced to 25 years in prison in March, remains at the center of the ongoing legal battle, with additional litigation aimed at other defendants such as FTX co-founder Gary Wang, former Alameda co-CEO Caroline Ellison, and former FTX co-owner Nishad Singh.

Another high-profile case involved the crypto exchange Binance, its former CEO Changpeng Zhao, and other executives. The CFTC’s efforts resulted in a substantial $150 million recovery from Zhao, as well as a $1.35 billion civil penalty and disgorgement order.

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The CFTC’s crackdown also extended to other notable crypto-related legal actions, including charges against Voyager’s former CEO, Stephen Ehrlich, for commodity pool fraud and regulatory failures. A court ruling this year supported the CFTC’s position, and the litigation continues. Additionally, the CFTC won a summary judgment in the case against Seneca Ventures, which was found to be operating a fraudulent Ponzi-like scheme involving crypto investments and misappropriated funds from a carbon offset program.

Kosta Gushterov