CFTC records $17.1B in 2024 through crypto enforcement actions

The Commodity Futures Trading Commission (CFTC) reported a record-breaking $17.1 billion in monetary relief for fiscal year 2024, driven largely by its enforcement of cryptocurrency-related cases.

This total comprised $2.6 billion in civil monetary penalties (CMP) and $14.5 billion in disgorgement and restitution.

According to the CFTC, the largest contributor to this total was the FTX case, which resulted in $12.7 billion in restitution and disgorgement, marking the largest recovery for victims and sanctions in the agency’s history.

The CFTC’s investigation into the FTX collapse, which occurred in November 2022, included fraud charges against the exchange, its sister firm Alameda Research, and several executives, including founder Sam Bankman-Fried.

The settlement from the case included $8.7 billion in restitution and $4 billion in disgorgement.

In March, Bankman-Fried was sentenced to 25 years in prison, and the litigation continues for other key defendants, including FTX co-founder Gary Wang and former Alameda co-CEO Caroline Ellison.

Additionally, the CFTC reached a settlement with Binance, the global crypto exchange, recovering $150 million from its founder Changpeng Zhao and $1.35 billion in civil penalties.

Binance was also ordered to pay $1.35 billion in disgorgement.

Other significant cases included fraud charges against Voyager’s former CEO Stephen Ehrlich, who faces ongoing litigation, and a Ponzi-like scheme involving Seneca Ventures, which was ordered to pay $110.9 million in CMP, $83.7 million in restitution, and $36.9 million in disgorgement.

“Misconduct in our jurisdictional markets is rarely confined, especially as these boundaries are continually being redefined by disruptive technology,” CFTC Chairman Rostin Behnam emphasised, stating the commission’s commitment to protecting customers.