Hold onto your hats, crypto enthusiasts! The FTX debacle has stirred up a whirlwind of legal action and jaw-dropping settlements. Picture this: FTX and its sibling, Alameda, got slammed with a mind-boggling $12.7 billion in fines from US regulators. That's enough to make anyone's digital wallet weep!
In the world of crypto crackdowns, these fines have set a new high score, reminding everyone that regulators have their eyes on the prize. And speaking of big numbers, Binance made headlines with a hefty $4 billion penalty, the priciest ever for an active crypto company, but only the fourth-largest overall. It's like a rollercoaster ride of fines out there!
According to a spicy report dropped this week, a whopping 25 US crypto enforcement actions have gone above the $10 million mark in settlements, with the total penalty loot reaching nearly $32 billion. It's clear the regulatory hounds are on the hunt.
The past two years have seen a frenzy of settlements, thanks to the dramatic FTX implosion led by the infamous Sam Bankman-Fried (SBF) in late 2022. In 2023 alone, US regulators have wrapped up eight major lawsuits, raking in a record-breaking $10.87 billion in settlements. That's an astronomical 8,327.1% jump from the year before!
Taking a stroll down memory lane, from 2019 to 2022, US regulators nailed down eight big settlements in crypto lawsuits. The first one hit in 2019, when the SEC snagged Block.one for $24 million over unregistered securities.
In 2020, the SEC doubled down, with BitClave coughing up $29.34 million and Telegram slapped with a $1.24 billion fine for its Gram token shenanigans. The party didn't stop there. In 2021, the bull market brought three more settlements, including Tether's $18.5 million payout to the New York Attorney General and a $41 million deal with the CFTC over USD backing claims.
But wait, there's more! The CFTC also handed Tether’s parent company, Bitfinex, a $1.5 million slap for illegal transactions. Meanwhile, Poloniex and BitMEX inked deals for $10.39 million and $100 million, respectively.
In 2022, BlockFi and Bittrex joined the settlement squad, shelling out $100 million and $29 million to the SEC and the Treasury Department. It's a wild world in crypto land, and the legal drama just keeps on coming!
