regulators require new safety measures for airlines after recent incidents
U.S. regulatory agencies have imposed a total of $32 billion in fines on cryptocurrency companies to resolve compliance disputes. Among the companies fined, which one had to pay the largest amount?
In 2024, a record $19.45 billion was collected in fines, with the largest portion coming from FTX and Alameda Research. Judge Peter Castel ruled in August that the firms must jointly and severally pay $8.7 billion in restitution to those who suffered losses. In addition, they are required to pay a $4 billion fee in return for their ill-gotten gains.
Terraform Labs was also fined $4.5 billion in 2024, with the firm paying about $3.59 billion in interest and a fine of $420 million. The founder, Do Kwon, was also required to pay $204.3 million in interest, fines, and compensation, and must accrue at least the same amount to the bankruptcy estate, which will be distributed among investors.
Other notable fines included Binance’s $4.3 billion and Celsius’s $4.7 billion in 2023. Binance was ordered to pay a fine of $1.81 billion in a criminal case and will lose $2.51 billion in compensation. As for Celsius, the U.S. Federal Trade Commission announced a settlement in 2023, which prohibited Celsius and its subsidiaries from offering certain products or services.
The catalyst for the bear market was Terra, followed by the bankruptcy of Celsius, and culminated in the collapse of FTX in November 2022. Currently, Binance remains the largest operational centralized exchange.
In 2023, a total of $10.87 billion was collected across eight cases by U.S. government agencies. With a record increase of 8,327.1% over the previous year, this marked a significant event in the enforcement of crypto regulations.
The last two years have seen a significant increase in crypto enforcement actions in the U.S., with 16 of the 25 significant actions taking place during this time. These actions reflect the increased regulatory scrutiny following the FTX collapse in late 2022.
In 2024, a total of eight settlements were reached for $19.45 billion, representing a 78.9% increase over the previous year. American regulators made significant progress in major cryptocurrency litigation from 2019 to 2022, reaching several major settlements with companies and individuals.
In addition to the fines and settlements imposed by regulatory agencies, individual top managers have also faced significant fines. For example, the founder of Binance agreed to pay a $50 million fine and voluntarily appeared for a court hearing from the UAE to the United States.
Another case involved charges against the BitMEX crypto exchange in 2020, resulting in fines and penalties for its founders. The total fines for just two individuals amounted to $60 million, with the possibility of regulators collecting several billion dollars more in the future.
