The US Commodity Futures Trading Commission (CFTC) 2024 enforcement numbers hit a dizzying $17.1 billion, drawing a line in the sand for the cryptocurrency industry.
Cases against former heavyweight FTX and global exchange Binance underscore the commission’s pivot toward the growing digital asset space. If there were any doubts about the CFTC’s regulatory reach in crypto, they’ve been wiped out.
CFTC’s Record-Breaking Crackdown on Crypto
With $2.6 billion in penalties and $14.5 billion in restitution and disgorgement, the bulk of the recovery came from the FTX scam of November 2022. FTX smashed records, with $12.7 billion awarded to victims—the CFTC’s largest haul in history.
The CFTC charged FTX, Alameda Research, and Sam Bankman-Fried with fraud in what it called a “watershed moment.” The crackdown laid bare a deliberate push to shield investors and slice through crypto’s underworld.
Former CFTC Chairman Chris Giancarlo:
“Trump wants to create the second Industrial Revolution in America.”
Furthering innovation, instead of resisting innovation in fields like:
The CFTC went straight for the jugular with fraud charges against FTX, Alameda Research, and a host of executives, including the beleaguered Sam Bankman-Fried. Calling it a “watershed moment,” the agency framed this crackdown as a defining push to protect investors and clean up crypto’s shady corners.
Binance was fined $1.35 billion and ordered to disgorge another $1.35 billion for violating U.S. derivatives laws and evading compliance under former CEO Changpeng Zhao.
Beyond FTX and Binance, the CFTC tackled several other significant crypto-related cases in 2024. Among them was a fraud charge involving Stephen Ehrlich, the former CEO of Voyager.
Another major case involved Seneca Ventures, a Ponzi-like scheme tied to digital asset investments. The court ordered its operators to pay over $231 million in penalties, restitution, and disgorgement combined. Similarly, the CFTC uncovered a romance scam in the crypto sector involving the misappropriation of $2.3 million in customer funds.
Pro-Crypto Leadership With the New CFTC Under Trump
With Donald Trump preparing to take office, the CFTC’s stance on crypto might see a seismic shift. Promises to turn America into a hub for digital assets and emphasize Bitcoin adoption suggest a softer touch on enforcement.
Rumors are currently pointing to Perianne Boring, a blockchain policy veteran and CEO of the Chamber of Digital Commerce, as a leading candidate for CFTC chair. Known for her Bitcoin advocacy, she could be key to shaping rules that balance oversight and innovation.
“Perianne Boring’s background equips her to bridge the gap between regulators and the crypto industry,” a source familiar with the selection process said.
Caroline Pham, a current CFTC commissioner, is another potential candidate known for promoting innovation through a pilot framework for digital asset markets. She and Boring are key figures for fostering collaboration between the CFTC and the crypto market.
Either way, now that we’ve broken past $100k, the sky’s the limit. The crypto space is shaping up to see fewer scams and more innovation.
Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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Isaiah McCall is an ultramarathon runner and journalist for 99Bitcoins. He started at USAToday in 2019 and now has a Medium blog following of 30k+ and millions of views. Follow him at @AfroReporter Read More
