CFTC Achieves Record Crypto Enforcement Results in Fiscal Year 2023
The Commodity Futures Trading Commission (CFTC) is ramping up efforts to combat crypto-related misconduct.
In a recent announcement, the regulator disclosed its record-breaking enforcement activities in the digital asset sector for fiscal year 2023. During this period, the CFTC initiated 47 actions related to digital asset commodities, constituting over 49% of all its actions, and resulting in penalties, restitution, and disgorgement totaling more than $4.3 billion. The CFTC proudly solidified its reputation as a leading enforcement agency in the digital asset space, with CFTC Chair Rostin Behnam expressing pride in the agency’s work. Notable actions included charges against FTX exchange, its former CEO Sam Bankman-Fried, and Alameda Research; allegations against Binance and its CEO; and the case against a bankrupt crypto lender and its former CEO, Alex Mashinsky.
The CFTC’s proactive stance stands in contrast to the Securities and Exchange Commission, which has faced criticism and legal challenges in its attempts to regulate the crypto industry, including a recent order to review Grayscale’s application for a Bitcoin ETF. Additionally, the CFTC highlighted its actions against decentralized finance (DeFi) projects Opyn, Inc., ZeroEx, Inc., and Deridex, Inc., which had allegedly engaged in illegal leveraged and margined retail commodity transactions in digital asset commodities and subsequently settled with the CFTC.
Clever Robot News Desk 9th November 2023
