cryptojournalist
In 2024, the U.S. Commodity Futures Trading Commission (CFTC) set a new record by recovering $17.1 billion, mostly from crypto-related cases.
Breaking Down the $17B
Of the total, $2.6 billion came from fines, and $14.5 billion was returned to victims of fraud. The bulk of this recovery came from the high-profile FTX case, which collapsed in 2022.
FTX Case: Biggest Win Ever
The FTX case alone accounted for $12.7 billion in restitution, making it the largest recovery in CFTC history. It involved fraud charges against the exchange, its partner Alameda Research, and several top executives, including founder Sam Bankman-Fried. Bankman-Fried was sentenced to 25 years in prison, and the CFTC is still going after other FTX figures.
Binance Settlement: $1.5 Billion
The CFTC also reached a settlement with Binance, recovering $1.5 billion. This includes $150 million from Binance’s former CEO Changpeng Zhao and $1.35 billion in penalties.
Other Notable Crypto Cases
The CFTC was also involved in other cases, like charging the former CEO of Voyager with fraud. It also won a case against Seneca Ventures, which was a Ponzi scheme that involved fake crypto investments. The court ordered them to pay over $110 million in penalties.
Protecting Investors from Crypto Fraud
CFTC Chair Rostin Behnam emphasized that the commission is committed to protecting investors and holding wrongdoers accountable, especially as crypto continues to change the financial landscape.
