Crypto Companies Paid $19B in Settlements to US Regulators in 2024
CoinGecko’s recent report reveals that United States regulators have received over $19 billion in settlements from cryptocurrency companies in 2024. This staggering amount represents nearly two-thirds of all settlements collected since 2019, further highlighting the heightened regulatory scrutiny in the crypto space.
One of the largest contributors to this total is FTX and its affiliated trading firm Alameda, which paid a whopping $12.7 billion to the Commodity Futures Trading Commission (CFTC) in an August 2024 settlement. The report also noted that the overall settlement amount in 2024 reflects a 78% increase from 2023, where crypto companies paid $10.87 billion. This surge is a massive 8,327% increase compared to settlement amounts in 2022.
Also read: Bybit Expands MT5 Platform to Include Indices Trading for Crypto Users
Key Events Driving the Surge in Settlements
The collapse of major crypto firms, such as Celsius and Terraform Labs in mid-2022, triggered an avalanche of lawsuits and regulatory investigations. These incidents marked the shift from the crypto bull run to the bear market and culminated in the collapse of FTX, which prompted stricter regulatory actions.
Terraform Labs faced a $4.47 billion settlement with the Securities and Exchange Commission (SEC) in response to the collapse of its algorithmic stablecoin TerraUSD (UST) in 2022. Meanwhile, Genesis, another key player, reached a $2 billion settlement with the Office of the Attorney General (OAG) in August 2024.
Regulatory Action Peaks in Recent Years
According to CoinGecko’s analyst Lim Yu Qian, the crypto industry has witnessed more settlements in the last two years than in all the previous years combined. This sharp increase is attributed to the regulatory crackdowns following the crypto market’s downturn, with many firms unable to withstand the bear market’s pressure.
Binance’s Billion-Dollar Settlement: A Landmark Case
One notable settlement in 2023 was Binance’s agreement to pay billions to settle charges, including violations of Anti-Money Laundering (AML) requirements. Binance remains the only operational crypto company that has reached a settlement of this magnitude with US regulators, further illustrating the expanding focus on crypto regulation and compliance.
