US CFTC Sets Record Revenue: FTX and Binance Contribute the Most, 2024 Cryptocurrency Enforcement Reclaims $17 Billion

The Commodity Futures Trading Commission (CFTC) announced on 12/4 that it set a record for the 2024 fiscal year, recovering up to $17.1 billion in fines and restitution in the enforcement of Crypto Assets. The most significant portion of this is the well-known FTX collapse case, making it the largest victim compensation case in CFTC history.

FTX case leads to compensation, recovering a record $12.7 billion

In 2024, the CFTC set a record of $17.1 billion in fines and compensation, with the FTX exchange collapse contributing $12.7 billion.

FTX's compensation details: involving fraud allegations against FTX exchange and its sister organization Alameda Research, as well as multiple executives including founder SBF and SBF's girlfriend. The US prosecutors ultimately ruled that FTX must pay a compensation of $8.7 billion and $4 billion in illegal proceeds recovery, setting a record as the highest single case in CFTC history.

Recent developments: SBF was sentenced to 25 years in prison in March this year, SBF's ex-girlfriend Caroline Ellison was sentenced to two years in prison, former FTX executive Ryan Salame is currently serving a seven-year sentence. Former FTX co-founder and CTO Gary Wang, and engineering manager Nishad Singh, both received three years of probation.

(Rapper Diddy and FTX founder SBF become inmates, sharing the same cell)

Binance closely followed, CZ paid huge fines

The CFTC's enforcement action against the well-known exchange Binance has also attracted a lot of attention. The case accuses Binance and its founder Changpeng Zhao (CZ) of involvement in improper operations, ultimately reaching a settlement. The CFTC considers this case as another significant victory in cryptocurrency law enforcement, demonstrating its tough stance against industry misconduct. The following are the amounts sought by the CFTC:

Zhao Changpeng (CZ) pays a personal fine of $150 million.

Binance was ordered to pay $1.35 billion in illegal profits and fines.

Other major encryption cases

In addition to FTX and Binance, CFTC also handled several major cases involving cryptocurrency this year:

Voyager Case: Former CEO of cryptocurrency asset broker Voyager, Stephen Ehrlich, is accused of fraud and operating without proper registration, and has been sued by the CFTC. The case is currently ongoing.

Seneca Ventures Ponzi Scheme: Seneca Ventures is suspected of using Crypto Assets investment and derivatives trading as reasons, and then through false advertising and unauthorized use of customer funds, was sentenced to pay 230 million US dollars, including compensation, fines, and recovery of illegal gains.

Romantic Fraud Case: CFTC sues a defendant for illegally embezzling $2.3 million of customer funds using romantic fraud methods for digital asset trading.

This article: US CFTC sets new record for revenue: FTX and Binance contribute the most, and the 2024 Cryptocurrency Enforcement recovers 17 billion pounds. It first appeared in Chain News ABMedia.