Crypto lawsuits in the US have led to a mind-blowing $19 billion in settlements just in 2024. That’s right—nearly two-thirds of all settlements since the crypto world first got a whiff of regulatory heat. According to CoinGecko, bankruptcies and legal dramas are shaking up the scene, and it’s the FTX-Alameda soap opera that’s dropping the biggest bag. With $12.7 billion already sent to the CFTC in August, they’ve made sure to leave their mark on the ledger.
FTX, Alameda, and the Legal Bloodbath
FTX and its infamous trading affiliate, Alameda, are swimming in a legal mess. Their August settlement alone handed over a whopping $12.7 billion to the Commodity Futures Trading Commission (CFTC). What makes this even crazier? This single deal blows past most of 2024’s total.
The report also notes the U.S. regulators aren’t done yet. This year’s haul from just eight settlements beats out 2023’s $10.87 billion by a cool 78%. It’s even more shocking when you realize the numbers have surged 8,327% from 2022. Now that’s a crypto bear market with consequences.
Terraform and Genesis Join the Chaos
Not to be outdone, Terraform Labs, still reeling from the TerraUSD collapse back in 2022, had to shell out $4.47 billion to the SEC. That’s the second-highest settlement of 2024, putting it right in the middle of this year’s high-stakes crypto game. Right behind them is Genesis, coughing up $2 billion after a January bankruptcy filing. Regulators caught them in August, too, snagging another big fish.
The collapse of Celsius and Terraform back in 2022 was the breaking point, pushing crypto into the trenches. That’s when the bull market officially ran out of steam, as noted by CoinGecko analyst Lim Yu Qian. And FTX’s implosion was the cherry on top, setting off a tidal wave of scrutiny.
Binance Settlement: A Unique Play
Then there’s Binance. It’s not even the biggest payout, but it’s the only operating company coughing up a billion-dollar settlement. In November 2023, Binance and its CEO, Changpeng Zhao, pled guilty to several charges, including Anti-Money Laundering violations, marking another win for regulators. With the clock still ticking for 2024, everyone’s eyes are on how much more could be pocketed.
Regulators aren’t stopping, and neither is the cash flow. The year isn’t even over, and they’ve already hit a 78.9% increase over 2023’s total. Lim Yu Qian thinks we haven’t seen the last of it—more bags could drop before the year’s end, making 2024 a record-breaker.
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