Originally published on: December 05, 2024
In a groundbreaking year for the United States Commodity Futures Trading Commission (CFTC), the agency is celebrating a historic achievement with a record-breaking $17.1 billion in monetary relief for fiscal year 2024. The surge in funds can be largely attributed to the CFTC’s relentless enforcement actions in the realm of cryptocurrency cases.
According to the CFTC’s announcement on December 5, the unprecedented amount includes $2.6 billion in civil monetary penalties (CMP) and a staggering $14.5 billion in disgorgement and restitution. The agency’s significant recovery stems primarily from its targeted pursuit of crypto exchange FTX, which faced collapse in November 2022.
The high-profile FTX case resulted in a monumental $12.7 billion in CFTC restitution and disgorgement, marking it as the “largest recovery for victims and sanctions in CFTC history.” The enforcement actions were directed against FTX, its affiliate Alameda Research, and key executives such as founder Sam Bankman-Fried, culminating in substantial financial penalties.
Notably, Bankman-Fried was handed a 25-year prison sentence in March, underscoring the severity of the transgressions. Despite this, the CFTC’s litigation against FTX is far from over, with ongoing proceedings involving other prominent figures linked to the case.
In a separate settlement involving crypto giant Binance, founder Changpeng Zhao, and company executives, the CFTC successfully recovered $150 million from Zhao and imposed a total of $2.7 billion in civil monetary penalties. Binance was also ordered to pay a hefty sum of $1.35 billion in disgorgement as part of the resolution.
The litany of significant crypto cases pursued by the CFTC also includes charges against Voyager’s former CEO for commodity pool fraud and registration failures, reflecting the agency’s vigilance in maintaining market integrity.
As CFTC Chair Rostin Behnam reaffirmed the agency’s commitment to safeguarding customers and ensuring the stability of regulated markets critical to the US economy, the monumental achievements in 2024 serve as a testament to the relentless pursuit of justice in the rapidly evolving world of cryptocurrencies.
