In a landmark development, U.S. regulatory agencies have finalized legal settlements totaling over $19 billion with cryptocurrency companies in 2024.
What Contributed to the Surge in Settlements?
The volume of major legal settlements escalated by 78% compared to the previous year, with $10.87 billion collected in 2023, highlighting an astounding growth of 8,327% since 2022. These figures include seized assets, refunds, fines, and accrued interest.
How Are Regulators Responding to Crypto Market Challenges?
The cryptocurrency market’s downturn traces back to the collapses of Celsius and Terraform Labs in mid-2022, marking a shift to a bear market. Following the FTX bankruptcy, U.S. regulators intensified scrutiny, with Terraform Labs agreeing to a $4.47 billion settlement with the SEC.
Key Insights
Legal settlements in 2024 have surged to unprecedented levels. Regulatory actions prompted by major collapses have led to heightened scrutiny. Significant amounts collected from crypto firms indicate a shift in enforcement practices.
Regulatory scrutiny of the cryptocurrency landscape has intensified since 2019, with total collections reaching $31.92 billion. As 2024 unfolds, it is likely to be remembered for its critical legal actions and settlements involving cryptocurrency entities.