Regulatory authorities in the USA have signed lawsuit settlements totaling more than $19 billion from cryptocurrency companies in 2024. Crypto data platform CoinGeckoAccording to ‘s report dated October 9, this year’s agreements constituted almost two-thirds of the total collections reached to date. FTX exchange and affiliated trading company Alameda are responsible for most of this amount. In August, these two cryptocurrency companies agreed to pay $12.7 billion to the US Commodity Futures Trading Commission (CFTC).
Lawsuit Settlements Break a Record in 2024
Big eight in 2024 lawsuit agreementIt increased by 78 percent compared to the previous year. While 10.87 billion dollars were collected in 2023, there was a surprising increase of 8 thousand 327 percent compared to 2022. While calculating the total amounts, including assets seized under the agreements, repayment, fines and interest, lawsuits filed against individual executives were not included in these figures.
CoinGecko research analyst Lim Yu Qianaccording to Celsius and the collapse of Terraform Labs in mid-2022 heralded the transition from a bull market to a bear market in the cryptocurrency market. After these collapses FTX‘s bankruptcy came, and US regulators further increased their supervision of the cryptocurrency industry. In connection with the collapse of the TerraUSD (UST) algorithmic stablecoin in 2022 Terraform Labssigned a $4.47 billion agreement with the US Securities and Exchange Commission (SEC). This agreement stands out as the second largest lawsuit settlement reached in 2024.
If in August genesisachieved its third major case settlement of the year by making a $2 billion agreement with the New York Attorney General’s Office (OAG). Genesis filed for bankruptcy in January 2023.
Binance Agreement and Increase in Regulatory Pressure
Qian pointed out that regulators could make new agreements before the end of 2024. He emphasized that although the year is not over yet, the agreement amounts in 2024 have increased by 78.9 percent compared to 2023. Pointing out that the supervision activities of US regulators in the cryptocurrency market have not slowed down, Qian stated that new agreements are likely to come at the end of the year.
One of the notable agreements in 2023 is Binance happened. The company stood out as the first cryptocurrency company to reach a billion-dollar settlement with regulators while continuing its operations. Binance and its former CEO in November 2023 Changpeng Zhaoagreed to agree to anti-money laundering requirements to resolve lawsuits with the U.S. Department of Justice (DoJ), Treasury Department, and CFTC.
US regulators since 2019 cryptocurrency companiesIt collected a total of 31.92 billion dollars from . It seems that 2024 will be remembered with the most intense controls and agreements on the cryptocurrency industry to date, before it is even over.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
