2024

Seneca

Gary

The United States Commodity Futures Trading Commission (CFTC) announced a record-breaking $17.1 billion in monetary relief for fiscal year 2024, largely driven by enforcement actions involving cryptocurrency cases.
The record amount comprised $2.6 billion in civil monetary penalties (CMP) and $14.5 billion in disgorgement and restitution, the CFTC <a data-ct-non-breakable="null" href="https://www.cftc.gov/PressRoom/PressReleases/9011-24" rel="null" target="null" text="null" title="null">said</a> on Dec. 5.
The recovery came mostly from the agency’s crackdown on crypto exchange FTX, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ftx-collapse-the-crypto-industry-s-lehman-brothers-moment" rel="" target="_self" text="null" title="https://cointelegraph.com/news/ftx-collapse-the-crypto-industry-s-lehman-brothers-moment">which collapsed in November 2022</a>.
The FTX case accounted for $12.7 billion in CFTC restitution and disgorgement, becoming the “largest recovery for victims and sanctions in CFTC history.”
<h2 id="ftx-and-binance-top-the-cftc-s-recovery-relief-in-2024">FTX and Binance top the CFTC’s recovery relief in 2024</h2>
The CFTC’s case against FTX involved fraud claims against the exchange, its sister firm Alameda Research, and several executives, including founder Sam Bankman-Fried. The settlement ordered $8.7 billion in restitution and $4 billion in disgorgement, making it the largest recovery in the agency’s history.
Bankman-Fried was <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sam-bankman-fried-sentenced-years-prison-hold" rel="null" target="null" text="null" title="null">sentenced to 25 years in prison</a> in March. The CFTC’s FTX litigation is continuing, the agency said.
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 <img alt="Fraud, CFTC, FTX, Policy" src="https://s3.cointelegraph.com/uploads/2024-12/019395d6-f142-7d38-bcc1-478a4fe98e23" title="">
 <figcaption style="text-align: center;">
 CFTC announces 2024 enforcement results. Source: <a data-ct-non-breakable="null" href="https://x.com/CFTC/status/1864365524617928954" rel="null" target="null" text="null" title="https://x.com/CFTC/status/1864365524617928954">CFTC</a>
 </figcaption>
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The cases are ongoing against other defendants, including FTX co-founder Gary Wang, former Alameda co-CEO Caroline Ellison, and, in a separate action, former FTX co-owner Nishad Singh, the agency said.
In a settlement against crypto exchange Binance, its founder and former CEO <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/changpeng-zhao-binance-wealthiest-prisoner-us" rel="null" target="null" text="null" title="null">Changpeng Zhao</a> and other executives, the CFTC recovered <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/binance-cz-cftc-settlement-court-order-pay-penalty" rel="null" target="null" text="null" title="null">$150 million from Zhao</a> and $1.35 billion in civil monetary penalties. The court also ordered Binance to pay $1.35 billion in disgorgement.
<h2 id="other-crypto-cases">Other crypto cases</h2>
Among other significant CFTC crypto cases, the agency mentioned charging <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/cftc-enforcement-action-voyager-ceo" rel="null" target="null" text="null" title="null">Voyager’s former CEO, Stephen Ehrlich</a>, with commodity pool fraud and registration failures.
“This year, the federal district court denied the former CEO’s motion to dismiss, holding in the CFTC’s favor on numerous significant legal questions,” the CFTC said, adding that the litigation is ongoing.
The CFTC also won an order granting summary judgment on all counts, finding defendant Seneca Ventures to be a fraudulent Ponzi-like scheme involving purported investment in crypto, derivatives and misappropriation of funds through a carbon offset program.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/trump-plans-cftc-for-crypto-regulator-report" rel="null" target="null" text="null" title="null">Trump eyes handing CFTC oversight of crypto: Report</a>
The court ordered Seneca Ventures defendants to pay at least $110.9 million in a CMP, $83.7 million in restitution and $36.9 million in disgorgement.
Additionally, the CFTC charged a defendant with engaging in romance scam tactics to fraudulently misappropriate $2.3 million in customer funds intended for digital asset commodity trading.
“The CFTC remains steadfast in its duties to protect customers and vigorously oversee CFTC-regulated markets critical to the health of the US economy,” CFTC Chair Rostin Behnam said, adding:
<blockquote>
 “Misconduct in our jurisdictional markets is rarely confined, especially as these boundaries are continually being redefined by disruptive technology.”
</blockquote>
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/ethereum-is-poised-to-catch-up-with-bitcoin-and-solana-in-2025/" rel="null" target="null" text="null" title="null">Comeback 2025: Is Ethereum poised to catch up with Bitcoin and Solana?</a>

CFTC bags record $17B in 2024 thanks to massive crypto enforcement

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Cointelegraph

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