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In 2024, US crypto firms paid over $19 billion in lawsuit settlements, with FTX and trading company Alameda accounting for $12.7 billion. This signifies a 78% increase from the previous year and an 8,327% increase from 2022. Two notable payouts included Terraform Labs’ $4.47 billion following TerraUSD’s collapse and Genesis’ $2 billion after filing for bankruptcy. Binance was the only operational crypto company to settle in 2023. Despite the high payouts, further settlements are anticipated due to continued regulatory scrutiny. Since 2019, US regulators have collected $31.92 billion from crypto companies.

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So far in 2024, crypto firms in the US have coughed up over $19 billion in settlements from lawsuits, which accounts for almost two-thirds of all settlements to date. According to a report from CoinGecko, nearly $12.7 billion of this total was paid by FTX, a broke crypto platform, and its connected trading company, Alameda, in an August settlement with the US Commodity Futures Trading Commission.

The settlements from eight situations in 2024 have resulted in 78% more gains for regulators compared to the $10.87 billion paid in the prior year. Yet, this represents a massive 8,327% increase in settlement values when compared to 2022. These numbers don’t include any individual lawsuits against company leaders.

A CoinGecko analyst highlighted the mid-2022 crashes of Celsius and Terraform Labs as significant moments that signaled a shift from a thriving to a declining crypto market. This led to greater regulatory attention in the US, particularly following the downfall of FTX.

A significant payout this year was Terraform Labs’ $4.47 billion settlement with the Securities and Exchange Commission following the collapse of its TerraUSD stablecoin in 2022. Also on the list is Genesis, which agreed to a $2 billion settlement after filing for bankruptcy in early 2023.

The year isn’t over and the analyst predicts that the US regulators’ ongoing scrutiny of the crypto industry might lead to a few more settlements before we bid goodbye to 2024. In 2023, Binance was the only functioning crypto company to reach settlement, which the analyst points out as a significant victory for US regulators.

Since 2019, the US regulators have amassed a whopping $31.92 billion in settlement from crypto firms.

Source: Cointelegraph