In 2024, U.S. regulators have successfully collected over $19 billion in settlements from cryptocurrency companies, setting a record for regulatory actions against the industry. The largest contributors to these settlements include bankrupt crypto exchange FTX and its affiliate Alameda Research, which together paid $12.7 billion to the Commodity Futures Trading Commission (CFTC) in August. The year’s settlements represent nearly two-thirds of all settlements made by crypto firms to date.
The major settlements involve FTX, Alameda, Terraform Labs, and Genesis, among others. Terraform Labs, responsible for the collapse of the TerraUSD stablecoin, paid $4.47 billion in a settlement with the Securities and Exchange Commission (SEC). Genesis also agreed to a $2 billion settlement with the Office of the Attorney General (OAG) after filing for Chapter 11 bankruptcy in January 2023. Binance’s $1 billion settlement marked the only operational firm to pay such a large sum in 2023.
The settlements were reached throughout 2024, with the largest, involving FTX and Alameda, finalized in August. Analysts anticipate additional settlements before the year ends, as regulators continue to crack down on the crypto sector. The report, released on October 9, shows a significant increase in settlement values compared to prior years.
The actions took place in the United States, where regulators such as the CFTC, SEC, and the Department of Justice (DOJ) have been tightening their grip on the cryptocurrency industry following several high-profile collapses. The growing regulatory pressure has led to an increase in financial penalties imposed on firms operating within the sector.
The surge in settlements follows a series of major scandals in the crypto industry, most notably the collapse of FTX, Terraform Labs, and Celsius. These events prompted U.S. regulators to take a firmer stance on enforcement, aiming to protect investors and eliminate illegal activities like money laundering, market manipulation, and fraud.
The $19 billion in settlements includes fines for civil penalties, forfeiture, disgorgement, and prejudgment interest. This represents a dramatic 78% increase from 2023 and a staggering 8,327% jump from 2022, highlighting the intensifying scrutiny of the crypto industry. With more regulatory action expected, 2024 could surpass previous years in both the number and value of settlements.
