Key Enforcement Actions in the U.S.

• U.S. regulators collected nearly $32 billion from crypto firms since FTX’s collapse.
• FTX and Alameda face a record $12.7 billion settlement in a pivotal regulatory shift.
• Recent enforcement actions surged, with 16 settlements totaling over $30 billion since 2022.

US regulators have stepped up enforcement actions against cryptocurrency companies, securing nearly $32 billion in settlements from top industry players. These regulatory efforts have increased after the high-profile collapse of crypto exchange FTX, showing the government’s growing scrutiny of the digital asset market.

Over half of the settlements were secured in the past two years. This shows a concerted effort to address possible violations, improve consumer protections, and reduce risks to financial stability.

FTX and Alameda Involved in Record-Setting Settlements

Notably, the largest regulatory action to date involved bankrupt crypto exchange FTX and its affiliated trading firm, Alameda Research. The Commodity Futures Trading Commission (CFTC) led the charge, securing a substantive $12.7 billion settlement in August 2024. 

This settlement came just under two years after FTX’s collapse, marking a significant turning point in US regulators’ approach to the crypto sector. The settlement aims to repay $11.2 billion that FTX owes its creditors, although lawsuits against individual executives remain ongoing.

Read also: FTX’s Reorganization Plan Secures Support from Over 94% of Dotcom Creditors

Besides FTX, other bankrupt crypto firms have also faced steep penalties. Celsius, a crypto lender, agreed to a $4.7 billion settlement, while Terraform Labs, the company behind the collapsed Terra stablecoin, reached a $4.5 billion deal with regulators. 

Binance also made headlines with a $4.3 billion settlement, the only billion-dollar case involving a company still in operation. This settlement ended multiple lawsuits filed by the Department of Justice (DOJ), the Treasury, and the CFTC.

A Surge in Settlements Post-2022

US regulators’ enforcement efforts have accelerated since the FTX collapse in late 2022. Since then, 16 major settlements have been reached, accounting for the bulk of the $32 billion total. In 2023, regulators secured eight top settlements worth over $10.87 billion, a record-breaking increase of 8,327% over the previous year. By 2024, they had already reached eight additional settlements worth $19.45 billion, a 78.9% increase from 2023.

While enforcement has increased in recent years, there were also significant settlements earlier. In 2019, the SEC reached a $24 million settlement with Block.one, the company behind the EOS blockchain. In 2020, Telegram’s subsidiary TON Issuer paid $1.24 billion over its unregistered Gram token offering, which was one of the largest settlements of that year.