US CFTC relief reaches record US$17.1 billion with crypto crackdown

The US Commodity Futures Trading Commission’s (CFTC ) fines and investor relief hit a record US$17.1 billion, largely due to the agency’s crackdown on defunct crypto exchange FTX.

Most of the fines and remedies in fiscal 2024 were tied to FTX and sister hedge fund Alameda Research, which led to more than US$8.7 billion in restitution and US$4 billion in disgorgement. The total was the largest in CFTC history, the regulator said in its annual report.

The regulator also ordered US$2.85 billion in fines and relief for crypto company Binance and founder Zhao Changpeng, or CZ, to settle claims that the firm operated an illegal digital asset derivative exchange.

In October, the agency took its first actions against the voluntary carbon credit market, alleging the former chief executive officer of CQC Impact Investors falsified data to obtain carbon credits.

“This was a year of large-scale, complex cases and settlements in both our traditional markets and in areas of increasing importance, such as voluntary carbon markets,” CFTC enforcement director Ian McGinley said. “We are committed to prioritising strong, effective and focused enforcement to deter future misconduct.” BLOOMBERG

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