The U.S. Commodity Futures Trading Commission (CFTC) has announced a record-breaking $17.1 billion in financial relief for fiscal year 2024, largely driven by enforcement actions within the cryptocurrency sector.
This unprecedented sum includes $2.6 billion in civil monetary penalties and $14.5 billion in disgorgement and restitution. A significant portion of this recovery is attributed to the collapse of the cryptocurrency exchange FTX in November 2022.
The FTX case marked a historic milestone for the CFTC, contributing $12.7 billion in restitution and disgorgement, the largest settlement in the agency’s history. The enforcement targeted fraud allegations involving FTX, its affiliate Alameda Research, and executives such as founder Sam Bankman-Fried.
Bankman-Fried, sentenced to 25 years in prison earlier this year, remains embroiled in legal disputes, as cases against FTX co-founder Gary Wang, former Alameda co-CEO Caroline Ellison, and Nishad Singh continue to unfold.
In another notable case, the CFTC imposed substantial penalties on the crypto exchange Binance and its former CEO , Changpeng Zhao. The enforcement action resulted in a $1.35 billion civil penalty and disgorgement order against Binance, with Zhao personally agreeing to a $150 million settlement.
Beyond FTX and Binance, the CFTC has pursued other notable crypto-related cases. Charges against Voyager’s former CEO, Stephen Ehrlich, for alleged commodity pool fraud and regulatory breaches are ongoing after a court upheld the agency’s claims.
Additionally, the CFTC secured a summary judgment against Seneca Ventures for operating a Ponzi-like scheme involving crypto investments and a fraudulent carbon offset program.
