Regulators Claim Over $19 Billion in Crypto Settlements for 2024

In 2024, U.S. regulatory bodies have managed to secure more than $19 billion in settlements from cryptocurrency firms, representing a significant portion of all settlements recorded to date.

Most of this sum – $12.7 billion – resulted from an August agreement with the CFTC involving the collapsed FTX exchange and Alameda.

This year’s total exceeds the $10.87 billion recorded in 2023 by 78% and reflects an extraordinary 8,327% increase compared to 2022. The settlements cover forfeitures and civil penalties but exclude individual executive lawsuits.

CoinGecko analyst Lim Yu Qian notes that the collapses of Celsius and Terraform Labs in 2022 triggered intensified regulatory scrutiny, especially after FTX’s downfall. Terraform Labs received a $4.47 billion fine from the SEC over its TerraUSD (UST) collapse, while Genesis reached a $2 billion settlement with the Office of the Attorney General after filing for bankruptcy.

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As the year progresses, Qian expects more settlements given the ongoing regulatory focus on the crypto sector. Notably, Binance settled for a billion dollars last November, marking the only case involving an active crypto firm, following its plea deal on various charges, including Anti-Money Laundering violations. Since 2019, regulators have collected about $31.92 billion in total settlements from the crypto industry.

Alexander Zdravkov