The United States Commodity Futures Trading Commission (CFTC) has revealed a record-breaking $17.1 billion monetary relief for fiscal year 2024. This significant sum was driven by enforcement actions involving cryptocurrency cases, particularly the collapse of the prominent crypto exchange FTX. The announcement was made on December 5, 2024.
The total relief includes $2.6 billion in civil monetary penalties (CMP) and $14.5 billion in disgorgement and restitution, the highest figure ever for the CFTC. A large portion of this sum can be attributed to the CFTC’s efforts in the FTX case, which saw $12.7 billion in restitution and disgorgement.
FTX Case Dominates Relief Figures
FTX, once valued at over $32 billion, collapsed in November 2022. The downfall came after its failed acquisition attempt by Binance. FTX has been a dominant player in the global crypto market, raising billions and partnering with high-profile brands. However, its finances unraveled quickly, revealing deep mismanagement and fraud.
The CFTC’s crackdown on FTX became the agency’s largest-ever recovery, including a massive $8.7 billion in restitution and $4 billion in disgorgement. The $12.7 billion total recovery is the largest for victims in CFTC history and the biggest penalty imposed by the agency.
In addition to the FTX case, the CFTC pursued several other significant enforcement actions in 2024. With a record $1.35 billion fine against Binance, one of the world’s largest crypto exchanges, for market manipulation and other violations. Binance founder Changpeng Zhao was personally fined $150 million, and former executives were penalised.
Other Enforcement Actions and Ongoing Cases
The CFTC also focused on decentralised finance (DeFi) and fraud cases, extending its reach into emerging crypto markets. As Chairman Rostin Behnam stated, these efforts reflect the agency’s commitment to protecting customers and overseeing markets crucial to the U.S. economy.
In its fiscal year 2024 enforcement report, the CFTC announced 58 new actions, securing a record-breaking $17.1 billion in monetary relief. Regarding record enforcement efforts, CFTC Chairman Rostin Behnam emphasised the agency’s dedication to market oversight, stating, “The CFTC remains committed to protecting customers and vigorously regulating markets critical to the U.S. economy.”
As part of ongoing legal proceedings, FTX co-founder Sam Bankman-Fried was sentenced to 25 years in prison in March 2024. The CFTC’s case against other individuals involved in the FTX scandal, including co-founder Gary Wang and former CEO Caroline Ellison, continues to progress.
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