The collapse of FTX has resulted in significant changes in the regulation of the US crypto market. The total fines and settlements reached a staggering $32 billion.

Heightened Regulation Post FTX

According to CoinGecko's report, regulatory scrutiny has intensified following the collapse of FTX. Consequently, 25 settlements exceeding $10 million each have been signed. Total fines over the past two years alone amount to approximately $32 billion, highlighting systemic regulation of the industry after the collapse of FTX in 2022, led by Sam Bankman-Fried.

US Regulators' Victories

From 2019 to 2022, US regulators achieved eight significant settlements in major lawsuits. The first occurred in 2019 when the SEC settled for $24 million with Block.one. In 2020, BitClave and Telegram added $29.34 million and $1.24 billion respectively. Noteworthy settlements also included Tether, Poloniex, BitMEX, BlockFi, and Bittrex in 2021 and 2022.

Penalties and Settlements in Crypto Industry

Following the collapse of FTX in 2022, the focus on market violations intensified. Binance, in particular, received the largest fine of $4 billion for an operating crypto company. However, FTX remains the leader with cumulative fines reaching $12.7 billion.

US regulators continue to increase pressure on cryptocurrency companies. Heightened oversight is driven by major scandals and the collapse of companies like FTX, resulting in significant financial implications for the entire industry.