- The CFTC pursued a record 96 enforcement actions in 2023, with almost half (47) targeting cryptocurrency fraud and violations.
- Major crypto cases included lawsuits against FTX, Alameda Research, Binance, Celsius Network and others for alleged fraud or illegal operations.
- Whistleblowers have been crucial in bringing crypto-related enforcement actions, with the CFTC paying out $16 million this year to whistleblowers reporting cryptocurrency scams.
The Commodity Futures Trading Commission (CFTC) recently announced its enforcement results for fiscal year 2023, which include a record number of actions against cryptocurrency fraud. The CFTC is the main U.S. regulator responsible for overseeing derivatives markets, including crypto assets.
CFTC Reports 96 Enforcement Actions Total
In total, the CFTC pursued 96 enforcement actions through its Division of Enforcement. These actions targeted fraud, market manipulation, and other violations across markets like cryptocurrency, swaps, and derivatives. From these cases, the agency secured over $1.43 billion in penalties, disgorgement, and restitution.
Almost Half of Cases Focused on Crypto Sector
Significantly, 47 of the 96 total enforcement actions focused on the digital asset sector. This represents 49% of all cases, the highest percentage ever for crypto-related actions by the CFTC.
Major Crypto Cases Include FTX, Celsius, and More
Some major crypto cases included lawsuits against FTX, Alameda Research, Binance, Celsius Network, and others for alleged fraud or illegal operations. The CFTC also won a default judgement against the Ooki DAO for running an unregistered trading platform and acting as an unlicensed futures commission merchant.
Whistleblowers Play Key Role in Crypto Enforcement
According to CFTC Commissioner Christy Goldsmith Romero, whistleblowers have been crucial in bringing crypto-related enforcement actions. So far this year, the agency has paid out $16 million to two whistleblowers who provided information on cryptocurrency scams. In total, CFTC has awarded $350 million to whistleblowers through its program.
The CFTC’s record number of crypto enforcement actions in 2023 demonstrates its commitment to protecting consumers and derivatives markets from fraud, manipulation, and illegal activities – especially in emerging areas like digital assets. With help from whistleblowers on the inside, the agency continues to pursue accountability for wrongdoing across cryptocurrency trading and lending platforms.