A recent report from CoinGecko has shed light on the significant impact US regulators are having on the digital asset industry in 2024. According to the data aggregator, US regulators have already secured over $19 billion in settlements from the crypto sector this year.
The largest enforcement action in terms of monetary value occurred on October 9th, when the Commodity Futures Trading Commission (CFTC) obtained a $12.7 billion judgment against bankrupt crypto exchange FTX and its affiliated trading firm Alameda Research. This judgment will go towards repaying the $11.2 billion owed to customers and creditors by FTX.
Another notable settlement involved defunct blockchain company Terraform Labs, which agreed to pay $4.5 billion following a fraud case filed by the U.S Securities and Exchange Commission (SEC). The jury unanimously found the company and its founder Do Kwon liable for the fraud.
In addition, bankrupt crypto lender Genesis paid $2 billion in settlements after being accused by the Office of the New York Attorney General of concealing over $1.1 billion in losses from investors in the Gemini Earn investment program.
Overall, US regulators have secured eight settlements in 2024 totaling $19.45 billion, representing a substantial 78.9% increase from the previous year. With regulators showing no signs of easing their scrutiny on the crypto industry, it is likely that more settlements will be reached in the coming months.
Stay informed by subscribing to email alerts and following us on social media for the latest updates on crypto regulatory actions. Don’t miss out on important developments in the industry.