The United States Commodity Futures Trading Commission (CFTC) has declared a remarkable $17.1 billion in financial restitution for the fiscal year 2024. The major impetus behind this colossal figure is the enforcement initiatives within the cryptocurrency domain.
This extraordinary amount consists of $2.6 billion in civil monetary fines and $14.5 billion in disgorgement and restitution. A substantial part of this recovery can be traced back to the downfall of the cryptocurrency exchange FTX in November 2022.
The FTX debacle was a landmark event for the CFTC, accounting for $12.7 billion in restitution and disgorgement, which stands as the largest settlement in the commission’s annals. The enforcement was centered around fraud accusations concerning FTX, its affiliated Alameda Research, and key executives like founder Sam Bankman-Fried.
Bankman-Fried, who was handed a 25-year prison sentence earlier this year, is still mired in legal wrangles. The cases against FTX co-founder Gary Wang, former Alameda co-CEO Caroline Ellison, and Nishad Singh are still in progress.
In another significant instance, the CFTC levied hefty penalties on the crypto exchange Binance and its erstwhile CEO, Changpeng Zhao. The enforcement led to a $1.35 billion civil penalty and disgorgement order against Binance, with Zhao individually consenting to a $150 million settlement.
Apart from FTX and Binance, the CFTC has also been engaged in other prominent crypto-related cases. The charges against Voyager’s former CEO, Stephen Ehrlich, for alleged commodity pool fraud and regulatory violations remain active after a court upheld the commission’s contentions.
Furthermore, the CFTC obtained a summary judgment against Seneca Ventures for running a Ponzi-style scheme involving crypto investments and a fraudulent carbon offset program.
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