Key Points:
The CFTC collected $17.1 billion in fines and investor relief in fiscal 2024, the highest in its history.
The US CFTC relief is mainly against defunct exchanges FTX, Binance and its founder, Changpeng Zhao.
The US Commodity Futures Trading Commission announced a record $17.1 billion in fines and investor relief for fiscal year 2024, buoyed by high-profile enforcement actions in the cryptocurrency sector. The total is the largest in the agency’s history, according to the annual report.
Read more: Donald Trump Administration Will Increase CFTC Power Over Crypto Industry
US CFTC Relief Sets Record with $17.1 Billion
A significant portion of the US CFTC relief stemmed from actions against the now-defunct crypto exchange FTX and its affiliated hedge fund, Alameda Research, amounting to a whopping $8.7 billion in restitution and a further $4 billion imposed by the CFTC in disgorgement due to their activities.
The CFTC also slapped a total of $2.85 billion as penalties and restitution for Binance, one of the largest cryptocurrency exchanges in the world, and its founder, Changpeng Zhao, referred to as CZ, over the accusations regarding Binance’s offering of trades with digital asset derivative exchanges that did not register in the United States.
Agency Expands Oversight to New Markets
In October, the agency targeted the voluntary carbon credit market for the first time. The CFTC alleged that the former CEO of CQC Impact Investors doctored data to get the carbon credits.
The US CFTC relief might change its function within the digital asset industry. The proposals being considered grant the agency power to regulate cryptocurrency exchanges and spot markets for goods like Bitcoin and Ether. This change, if approved, will lessen the regulatory supremacy of the Securities and Exchange Commission, thereby igniting a debate on the jurisdictional boundaries.
