US regulators have collected more than $19 billion in settlements from cryptocurrency companies in 2024 alone, accounting for nearly two-thirds of the $31.92 billion in fines imposed on the industry since 2019, according to an October 9 report from CoinGecko.
FTX and Alameda Lead Settlement Payouts in 2024
Bankrupt exchange FTX and its affiliate Alameda Research contributed the largest share of 2024’s settlements, paying $12.7 billion to the Commodity Futures Trading Commission (CFTC) in August. Across eight major settlements this year, regulators secured 78% more than the $10.87 billion collected in 2023. This marks an 8,327% increase compared to 2022’s total settlement value.
The surge in regulatory actions over the past two years outpaced all previous years combined. Settlement amounts include civil penalties, forfeitures, prejudgment interest, and disgorgements, but exclude lawsuits against individual executives.
Terraform Labs and Genesis Among Top Payouts
Terraform Labs’ $4.47 billion settlement with the Securities and Exchange Commission (SEC), linked to the collapse of its TerraUSD (UST) stablecoin in 2022, was the second-highest crypto settlement in 2024. Another significant payout came from Genesis, which agreed to a $2 billion settlement with the Office of the Attorney General (OAG) in August. Genesis filed for Chapter 11 bankruptcy in January 2023, following its struggles during the industry’s downturn.
Industry Shift: From Bull Run to Bear Market
CoinGecko research analyst Lim Yu Qian attributed the rapid increase in regulatory scrutiny to the collapse of major firms like Celsius and Terraform Labs in mid-2022. These events marked the end of the crypto bull market and set the stage for FTX’s downfall, which triggered a new wave of enforcement actions in the US.
2024 Enforcement Expected to Intensify
With a few months left in 2024, analysts expect additional settlements before the year ends. Lim Yu Qian noted that regulatory bodies show no signs of slowing down their efforts to hold the crypto industry accountable.
“This year has already surpassed 2023’s total by nearly 79%, and there’s still time for more settlements before December 31,” Qian said.
The surge in enforcement actions highlights the growing determination of US regulators to establish clearer accountability within the crypto sector.
