CFTC Reports $17 Billion Monetary Relief in 2024 from Digital Assets
The United States Commodity Futures Trading Commission (CFTC) just released some incredible news— they managed to secure a whopping $17.1 billion in monetary relief for fiscal year 2024! What’s behind this impressive number, you might ask? Well, it turns out that their success is largely due to enforcement actions related to digital assets.
In the past year, the CFTC took on 58 new actions, including some groundbreaking cases involving digital asset commodities. However, one case stood out from the rest and played a significant role in contributing to this record-breaking achievement: the CFTC’s crackdown on the now-defunct digital asset exchange FTX, which crashed in November 2022.
The FTX case alone resulted in $12.7 billion in restitution and disgorgement, making it the largest recovery in the history of the CFTC. Did you know that FTX was once considered one of the world’s top digital asset exchanges, led by the well-known advocate for crypto, Sam Bankman-Fried? However, it was discovered that FTX had been diverting customer funds to its sister company, Alameda Research, for risky trading. This revelation led to a chain of events that ultimately led to FTX filing for bankruptcy.
Despite this massive win, the CFTC is still pursuing other cases related to digital assets that have contributed to their successful year. They recently settled with Binance, the largest digital asset exchange by trading volume, recovering $150 million from company founder Changpeng Zhao and requiring Binance to disgorge $1.35 billion in ill-gotten transaction fees.
It’s not just about the money for the CFTC. According to Chairman Rostin Behnam, their ultimate goal is to ensure that bad actors are held accountable and that victims receive the justice they deserve. The CFTC’s commitment to addressing misconduct in the rapidly evolving landscape of digital assets is truly commendable.
And while the CFTC celebrates their achievements, let’s not forget that the Securities and Exchange Commission (SEC) also had a record year. With an order for $8.2 billion in financial remedies, thanks to a successful case involving Terraform, it’s clear that regulatory agencies are stepping up their game to protect investors and maintain the integrity of financial markets.
