A recent CoinGecko report states that since 2024, U.S. regulators have received more than $19 billion in litigation settlements from cryptocurrency companies. Among them, the bankrupt exchange FTX and its affiliate Alameda paid the highest amount, paying a settlement of $12.7 billion in August. Compared with previous years, the amount of settlements in the cryptocurrency circle this year has increased significantly. A total of 8 settlements were reached in 2024, and the total amount increased by 78% compared to 2023, when the United States received $10.87 billion. Compared with 2022, this year's settlement amount has surged by 8,327%.
These settlement totals include forfeiture, recovery, civil penalties, settlement amounts, and prejudgment interest, but do not include lawsuits against individual executives.Due to the collapse of LUNA and UST in 2022, Terraform Labs reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC), making it the second largest settlement this year.
The third-largest settlement in 2024 came from bankrupt crypto lender Genesis, which reached a $2 billion settlement with the New York Attorney General’s Office in August. Genesis filed for Chapter 11 bankruptcy protection back in January 2023.
U.S. regulators have received a total of $31.92 billion in settlements
Since 2024 is not over yet, there may be more settlements before the end of the year, considering the tough stance taken by U.S. regulators on the cryptocurrency industry. Since 2019, U.S. regulators have collected a total of approximately $31.92 billion in settlements from 25 cryptocurrency companies.
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