CFTC States 50% of Reported Cases Involved Crypto in Released Enforcement Results
The US premier enforcement agency, Commodity Futures Trading Commission (CFTC), has announced the release of its record-setting enforcement results for the fiscal year (FY) of 2023.
As detailed in an official document dated November 7, the government agency reported its pursuit of 96 enforcement actions through its Division of Enforcement (DOE).
These actions primarily targeted cases related to fraud, derivative market manipulation, and other significant violations across various markets, including cryptocurrency assets and swap markets.
From these 96 enforcement actions, the CFTC successfully secured over $4.3 billion in combined legal penalties, disgorgement, and restitution.
Notably, 47 of these cases were focused on the digital asset sector. This phenomenal figure represents more than 49% of the total lawsuits completed in the fiscal year, making it a historic best in legal actions taken by the CFTC in the emerging industry.
@CFTC released its FY 2023 record-setting #enforcement results. Learn more: https://t.co/J8iBX4kWtG
— CFTC (@CFTC) November 7, 2023
Zooming in on its significant legal actions, the CFTC stated that it sued embattled FTX and Alameda Research executives like Sam Bankman-Fried, Nashad Singh, and Caroline Elisson.
These actions were taken in response to alleged fraudulent schemes involving digital asset commodity trading that led to the loss of $8 billion for a large portion of its customers, including US citizens.
Following this, the Binance exchange and its key executives were hit with lawsuits for operating an illegal digital asset derivative exchange.
Additionally, the CFTC charged the now-defunct decentralized lending platform Celsius Network and its CEO, Alex Mashinsky, with fraud and material
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