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Since 2019, US regulators have collected a total of $31.92 billion in settlements against 25 crypto companies.
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United States regulators have received over $19 billion in lawsuit settlements from crypto companies in 2024 so far, representing almost two-thirds of all settlements to date.
Data in an Oct. 9 report from CoinGecko shows bankrupt crypto exchange FTX and affiliated trading firm Alameda are responsible for most of the funds, with $12.7 billion paid to the Commodity and Futures Trading Commission (CFTC) in an August settlement.
Across eight settlements in 2024, regulators have netted 78% more than in 2023, which only saw $10.87 billion paid. However, that is an 8,327% uptick in settlement values compared to 2022.
The last two years have seen more settlements with regulators than all the previous years combined. Source: CoinGecko
The total settlement amounts included forfeiture, disgorgement, civil penalties, settlement and prejudgment interest, but not individual lawsuits against executives.
According to CoinGecko research analyst Lim Yu Qian, the collapse of Celsius and Terraform Labs in mid-2022 were “key events that marked the shift from crypto bull run to bear market, culminating in FTX’s fall, which prompted a new wave of regulatory scrutiny in the US.”
Terraform Labs’ $4.47 billion settlement with the Securities and Exchange Commission (SEC) regarding the algorithmic stablecoin TerraUSD (UST) collapse in 2022 is the second-highest settlement for the year.
Related: SEC crypto enforcement hits $4.7B this year, rising 3,000% from 2023
Genesis rounded out the top three for 2024 with its $2 billion settlement reached with the Office of the Attorney General (OAG) in August. Genesis filed for Chapter 11 bankruptcy in January 2023.
Regulator activity ramps up in last two years
The year isn’t over yet and Qian thinks given regulators’ tenacity, 2024 could see a few more settlements before the clock strikes midnight on Dec. 31.
“Even with a few months left in the year, 2024 has already recorded a 78.9% increase in settlement value compared to 2023,” she said.
“Given that US regulators show no signs of slowing down crypto industry scrutiny, 2024 may potentially be on track to record more lawsuit settlements than last year.”
This year has seen a record high for settlements between US regulators and crypto companies. Source: CoinGecko
Qian said one scalp claimed in 2023 was of particular note because it was the only company still operating when a settlement was reached.
“Binance’s settlement is a landmark win for US regulators by being the only billion-dollar settlement given to an operating crypto company so far, despite ranking only fourth in monetary value,” she said.
In November 2023, Binance and its former CEO, Changpeng “CZ” Zhao, agreed to plead guilty to several charges, including Anti-Money Laundering requirements, to resolve lawsuits with multiple US regulators, including the Department of Justice (DOJ), Treasury Department and CFTC.
Since 2019, US regulators have collected $31.92 billion in settlements against crypto companies.
This article first appeared at Cointelegraph.com News
