What Are the Top Crypto Enforcement Actions in the US?
The top crypto enforcement action carried out by US regulators has been against bankrupt crypto exchange FTX and affiliated trading firm Alameda, which were jointly dealt the biggest settlement charges of $12.70 billion to date. FTX and Alameda’s lawsuit was led by the Commodity and Futures Trading Commission (CFTC), with the settlement announced in August 2024, just under two years since FTX collapsed. While this judgment does not include CFTC’s lawsuit against individual company executives, the $12.70 billion settlement will go towards repaying the $11.20 billion that FTX is estimated to owe customers and creditors.
US regulators’ next largest crypto enforcement actions by monetary value are the settlements against bankrupt crypto lender Celsius ($4.70 billion), former industry leader Terraform Labs ($4.50 billion) and major crypto exchange Binance ($4.30 billion). Notably, the collapses 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.
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. The leading global crypto exchange agreed to plead guilty in November 2023, to resolve lawsuits with multiple US regulators including the Department of Justice (DOJ), Treasury Department and the Commodity Futures Trading Commission (CFTC).
There are now 25 crypto enforcement actions from US regulators that have resulted in settlements of over $10.00 million. In total, US regulators have cumulatively reached $31.92 billion in their top settlements against crypto companies.
When Did the Top US Crypto Enforcement Actions Happen?
Out of the top 25 crypto enforcement actions in the US, 16 settlements were reached in the last two years, reflecting heightened regulatory scrutiny following the FTX collapse in late 2022. Specifically, US regulators settled 8 top lawsuits in 2023 with a combined value of $10.87 billion, which was a record high and represented an 8,327.1% spike in settlement value compared to the year before.
Subsequently, US regulators have secured another 8 settlements in 2024 to date, worth $19.45 billion or almost two thirds of total top settlement value. Even with a few months left in the year, 2024 has already recorded a 78.9% increase in settlement value compared to 2023. 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.
| Year | No. Settlements | Total Settlement Value |
|---|---|---|
| 2019 | 1 | $24.00 million |
| 2020 | 2 | $1.27 billion |
| 2021 | 4 | $169.89 million |
| 2022 | 2 | $129.00 million |
| 2023 | 8 | $10.87 billion |
| 2024 | 8 | $19.45 billion |
2019 to 2022: US Regulators Won 8 Top Crypto Lawsuit Settlements
In late 2019, US regulators achieved their first major crypto lawsuit settlement with Block.one (now rebranded as B1), the company behind EOS. The Securities and Exchange Commission (SEC) reached a settlement with Block.one for $24.00 million, over charges that the company sold unregistered securities.
The SEC went on to win two more major crypto lawsuits in 2020, with ICO issuer BitClave’s $29.34 million settlement in May, and Telegram’s $1.24 billion settlement over its Gram token offering under subsidiary TON Issuer. The $1.24 billion Telegram settlement included a disgorgement of $1.22 billion and a civil penalty of $18.50 million.
Amid the 2021 bull market, US regulators managed to record three top crypto enforcement actions against notable industry players. Stablecoin issuer Tether reached a settlement of $18.50 million with the New York Attorney General (NY AG) in February, followed by a $41.00 million settlement with the CFTC in October, over claims that USDT was fully backed by USD assets. The CFTC also settled against Tether’s parent company Bitfinex, at a lower $1.50 million penalty for illegal transactions. Meanwhile, crypto exchanges Poloniex and BitMEX settled their lawsuits in August for $10.39 million and $100.00 million respectively.
In 2022, crypto lender BlockFi reached a $100.00 million settlement with the SEC and North American Securities Administrators Association (NASAA), while crypto exchange Bittrex reached a $29.00 million settlement with the Treasury Department.
US Regulators’ Top Crypto Settlements
The top 25 lawsuit settlements between crypto companies and US regulators, ranked by monetary value as of October 9, 2024, are as follows:
| Rank | Company | Settlement with US Regulators |
|---|---|---|
| 1 | FTX & Alameda | $12.70 billion |
| 2 | Celsius | $4.70 billion |
| 3 | Terraform Labs | $4.50 billion |
| 4 | Binance | $4.30 billion |
| 5 | Genesis | $2.00 billion |
| 6 | Voyager | $1.65 billion |
| 7 | Telegram (TON) | $1.24 billion |
| 8 | Coinbase | $100.00 million |
| 9 | BlockFi | $100.00 million |
| 10 | BitMEX | $100.00 million |
| 11 | Abra | $82.00 million |
| 12 | Silvergate | $63.00 million |
| 13 | Gemini | $50.00 million |
| 14 | Nexo | $45.00 million |
| 15 | Tether | $41.00 million |
| 16 | Gemini | $37.00 million |
| 17 | Kraken | $30.00 million |
| 18 | BitClave | $29.34 million |
| 19 | Bittrex | $29.00 million |
| 20 | Bittrex | $24.00 million |
| 21 | Block.one (B1) | $24.00 million |
| 22 | KuCoin | $22.00 million |
| 23 | Genesis | $21.00 million |
| 24 | Tether | $18.50 million |
| 25 | Poloniex | $10.39 million |
Methodology
The study examined crypto companies’ monetary value settlements with United States regulators in federal and state court cases that have reached resolution, based on official announcements from January 1, 2019 to October 9, 2024. The settlement year was attributed according to the date on the respective press releases. Charges brought against individuals were excluded.
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