The US Commodity Futures Trading Commission (CFTC) has reportedly secured $17.1 billion for fiscal year 2024 through financial enforcement. The figure, which includes $2.6 billion in civil monetary penalties and $14.5 billion in disgorgement and restitution, is said to be the agency’s “largest recovery ever.”
In a press statement released on November 4, the financial law enforcement authority CFTC announced it had collected over $17 billion by initiating 58 new enforcement actions, including groundbreaking cases in digital asset commodities.
The agency’s inaugural efforts to combat fraud sought cases from voluntary carbon credit markets, intricate manipulation cases across multiple markets, and noteworthy compliance cases, including the largest compliance-related case in its history.
The CFTC also pursued ongoing litigation with determination, achieving notable victories that yielded substantial recoveries. The largest recoveries were tied to high-profile enforcement actions against cryptocurrency exchanges FTX and Binance.
Landmark crypto cases included FTX and Binance
The CFTC’s enforcement efforts in 2024 were headlined by its actions against cryptocurrency giants FTX and Binance. These cases alone accounted for a significant portion of the agency’s record-breaking recoveries.
FTX’s case involved fraud allegations targeting the exchange, its affiliate Alameda Research, and several of its executives, including founder Sam Bankman-Fried. The settlement resulted in $8.7 billion in restitution and $4 billion in disgorgement, an amount the CFTC called the largest recovery in the agency’s history.
Bankman-Fried, who faced both criminal and civil proceedings, was sentenced to 25 years in prison in March. Litigations against other FTX affiliates, including co-founder Gary Wang, former Alameda co-CEO Caroline Ellison, and FTX co-owner Nishad Singh, are still ongoing.
The CFTC also reached a settlement with Binance, its founder Changpeng Zhao, and other executives for operating an illegal digital asset derivatives exchange and evading U.S. regulations.
The penalties the agency issued included $150 million from Zhao, $1.5 million from former Chief Compliance Officer Samuel Lim, and a combined $1.35 billion in civil monetary penalties and disgorgement from Binance.
Other crypto firms under scrutiny
In addition to the high-profile cases against FTX and Binance, the CFTC continued to actively pursue enforcement actions throughout the digital asset sector. Among the notable actions was the charge against former Voyager Digital CEO Stephen Ehrlich for commodity pool fraud and registration violations.
A significant legal victory followed when a federal court rejected Ehrlich’s motion to dismiss, allowing the case to proceed.
The agency also secured a major win in its case against Seneca Ventures LLC, a fraudulent Ponzi-like operation involving crypto investments and misappropriated carbon offset funds. The court ordered the defendants to pay over $230 million in combined civil monetary penalties, restitution, and disgorgement.
The financial authority also tackled a case involving romance scam fraud, charging staff members of crypto exchange Debiex with defrauding victims of $2.3 million through a pig-butchering scam.
Enforcement action on firms outside crypto
While digital assets played a central role in the CFTC’s 2024 enforcement activity, it also extended its net to monitor other financial industries.
In September, the agency announced that Judge Mary Rowland of the Northern District of Illinois issued a final judgment against Sam Ikkurty and several entities, including Seneca Ventures LLC, ordering them to pay $209 million in compensation.
The ruling followed fraud and misappropriation allegations, with the court siding with the financial authority on all charges. The CFTC also recovered over $18 million in stolen digital assets from a court-appointed receiver.
CFTC Chairman Rostin Behnam highlighted the agency’s adaptability in overseeing markets disrupted by technology. He emphasized the agency’s role in safeguarding consumers and ensuring the integrity of U.S. markets.
“Misconduct in our jurisdictional markets is rarely confined, especially as these boundaries are continually being redefined by disruptive technology,” said Behnam.
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