Crypto Firms Paid Over $17 Billion in Fines to CFTC During 2024 Fiscal Year
CFTC initiate 58 new enforcement actions with actions encompassing various misconduct, including precedent-setting cases involving digital asset commodities.
The Commodity Futures Trading Commission (CFTC) says crypto firms paid a record sanction fee of $17.1 billion for the fiscal year 2024. The substantial figure comprises $2.6 billion in civil monetary penalties and $14.5 billion in disgorgement and restitution, significantly driven by the resolution of several high-profile digital asset cases.
Moreover, the agency’s achievements represent a substantial victory in its ongoing commitment to protecting consumers and maintaining the integrity of US commodity markets.
CFTC Initiate 58 New Enforcement Actions
FY 2024 saw the CFTC initiate 58 new enforcement actions. These actions encompassed various misconduct, including precedent-setting cases involving digital asset commodities. The agency’s first foray into addressing fraud within voluntary carbon credit markets, complex manipulation schemes across various markets, and significant compliance violations—culminating in the largest compliance case in the CFTC’s history.
Furthermore, the CFTC diligently pursued pending legal actions, resulting in notable courtroom victories and substantial recoveries. Chairman Rostin Behnam emphasized the CFTC’s unwavering dedication to safeguarding consumers and overseeing the CFTC-regulated markets integral to the US economy’s health.
Additionally, he highlighted the evolving nature of these markets, constantly reshaped by technological advancements, and lauded the Division of Enforcement’s adaptability and proactive approach to emerging challenges.
Director of Enforcement Ian McGinley underscored the agency’s commitment to holding repeat offenders accountable, securing substantial monetary relief and penalties, and implementing robust remedial measures.
He highlighted the complexity and scale of the cases and settlements achieved in both traditional and emerging markets, such as the voluntary carbon market.
McGinley affirmed the CFTC’s dedication to prioritizing strong, effective, and focused enforcement to deter future misconduct, expressing gratitude for the unwavering dedication and expertise of the division’s staff.
The CFTC’s strengthened reputation as a leading enforcement agency within the digital asset sector is undeniable.
The Agency Record-breaking Monetary Sanctions
The settlement of fraud claims from FTX and Alameda Research resulted in a landmark $12.7 billion recovery—the largest in CFTC history—comprising $8.7 billion in restitution and $4 billion in disgorgement for victims. Legal proceedings continue against the remaining defendants, including Samuel Bankman-Fried, Gary Wang, Caroline Ellison, and Nishad Singh.
Furthermore, charges against Binance, Changpeng Zhao, and Samuel Lim resulted in a settlement encompassing a $1.35 billion civil monetary penalty against Binance, $150 million against Zhao, and $1.5 million against Lim.
Additionally, Binance was ordered to pay $1.35 billion in disgorgement for operating an illegal digital asset derivatives exchange and evading Commodity Exchange Act provisions and CFTC regulations.
The agency further filed charges against Voyager’s former CEO for commodity pool fraud and registration failures, with the federal district court denying the CEO’s motion to dismiss, and the case continuing.
