Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Crypto settlements near $20B in 2024 as US regulations tighten

Crypto settlements near $20B in 2024 as US regulations tighten

GrafaGrafa2024/10/10 03:45
By:Isaac Francis

US regulators have secured $19.45 billion from crypto-related settlements in 2024, marking a 78.9% increase from 2023. 

This rise comes amidst heightened regulatory scrutiny, with major firms such as FTX (CRYPTO:FTT) and Alameda Research paying the largest fines of the year, totaling $12.7 billion in penalties. 

These funds were directed toward compensating FTX customers and creditors, whose claims reached $11.2 billion.

A CoinGecko report revealed that, so far in 2024, eight major settlements have contributed to the nearly $20 billion total, making this year a significant one for crypto enforcement. 

Bankrupt crypto lender Celsius followed with a $4.7 billion settlement, while Terraform Labs, which contributed to the 2022 market downturn, paid $4.5 billion. 

Binance, the world’s largest crypto exchange, settled for $4.3 billion, a move that led to the resignation and four-month imprisonment of its former CEO, Changpeng Zhao.

These regulatory actions, particularly following the collapse of FTX, have sparked a broader clampdown on the industry. 

The US Securities and Exchange Commission (SEC) has been at the forefront of these efforts, with Chair Gary Gensler increasing the agency’s enforcement actions since his appointment in 2021. 

In the SEC’s 2023 fiscal year, the agency took 784 enforcement actions, resulting in $4.9 billion in penalties.

Critics argue that the aggressive approach by US regulators, especially under Gensler, has led to a regulatory environment focused on enforcement rather than collaboration. 

According to Paradigm’s Brendan Malone, 92% of the SEC’s actions under Gensler have targeted registration violations. 

Alexander Grieve, Paradigm’s VP of Government Affairs, echoed concerns about the SEC’s tactics, criticising its approach to enforcement.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Pi Coin Struggles and Pi Day 2’s Impact on Its Future Trajectory

In Brief Pi Coin struggles below $0.65 amid rising bearish pressure. Upcoming "Pi Day 2" on June 28 may impact its short-term direction. Analysts observe concerning signs in PI’s technical indicators and on-chain data.

Cointurk2025/06/10 14:16
Pi Coin Struggles and Pi Day 2’s Impact on Its Future Trajectory

South Korea Sets New Standards for Cryptocurrency Market

In Brief South Korea introduces the "Digital Asset Basic Act" for cryptocurrency market clarity. The bill aims to boost stablecoin usage and offers a predictable business environment. Swift action contrasts with the slow U.S. progress, giving Korea a competitive edge.

Cointurk2025/06/10 14:16
South Korea Sets New Standards for Cryptocurrency Market