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Share link:In this post: Regulators have won $32 billion in remedies from crypto firms violating American investment laws. A major highlight of their efforts is the reparations that FTX Trading Limited and Alameda LLC will pay customers for exposing them to losses. Regulators have increased their surveillance of the crypto scene to root out bad actors.
The Commodity Futures Trading Commission (CFTC) suit against FTX Limited and Alameda Research has netted the highest settlements since regulators began crypto enforcement actions against errant players.
According to a new Coingecko report, the firms associated with disgraced investor Sam Bankman-Fried (SBF) will pay $12.7 billion (bn) for defrauding their customers. The figure amounts to 40% of the roughly $32bn the watchdogs have collected to date.
The CFTC sued SBF, the now insolvent FTX Ltd, and Alameda in late 2022 for breaching the Commodities Exchanges Act and its regulations. That case concluded in early August 2024, with a New York court issuing the regulator consent orders compelling the SBF-linked companies to pay depositors $8.7bn in restrictions and another $4bn in disgorgement.
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