CFTC Brought 47 Actions Against Digital Assets in FY 2023

The U.S. derivatives market watchdog has pursued more crypto-related cases than any other regulatory institution.

CFTC following the dodgy DEFI Connections.
Created by Kornelija Poderskytė from DailyCoin
  • CFTC said it is the “premier enforcement agency” in the digital assets space.
  • Almost half of the cases the regulator pursued in FY 2023 relate to crypto.
  • These cases included high-profile enforcement actions.

The U.S. Commodity Futures Trading Commission (CFTC) has pursued more crypto-related cases than any other enforcement agency in the country.

On November 7, the regulator released its enforcement results for Fiscal Year 2023, which included 96 enforcement actions charging fraud, manipulation, and other wide-ranging violations in diverse markets.

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Of the 96 cases, almost half of them were related to the nascent digital assets market. With the record-setting number, the CFTC has proclaimed itself the “premier enforcement agency” in crypto.

Crypto’s Premier Enforcement Agency

In a press statement released the same day, the CFTC noted that digital assets-related cases represented 49% of all its enforcement actions for FY 2023. This includes 47 actions targeting diverse companies, products, or individuals.

“In FY 2023, the CFTC cemented its reputation as a premier enforcement agency in the digital asset space. It filed high-profile complaints addressing frauds by major exchanges, individual Ponzi-schemers, and others; obtained a first-of-its-kind litigation victory against a decentralized autonomous organization,” the statement read.

The CFTC noted that during the year, it brought innovative litigation involving cross-market manipulations in blockchains. It demonstrated its persistent efforts “to protect the public” in decentralized finance (DeFi).

Of the biggest enforcement actions in crypto, the regulator listed the charges it brought against disgraced FTX founder Sam Bankman-Fried and Alameda Co-CEO Caroline Ellison, as well as charges against Binance, its founder Changpeng Zhao, and a former chief compliance officer at the exchange.

On the Flipside

  • According to CFTC commissioner Caroline D. Pham, the regulator might be overreaching in some of its enforcement actions in crypto.
  • On October 12, when the CFTC charged Former Voyager Digital CEO and Co-Founder Stephen Ehrlich, Commissioner Pham dissented from the regulatory action, arguing that the regulator acted beyond its statutory authority and “would disrupt well-established legal and regulatory frameworks for lending to institutions and consumer finance.”

Why This Matters

The CFTC’s assertive oversight over crypto aligns with calls by U.S. lawmakers for a more proactive and clear regulatory approach in the digital assets space.

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Read why Binance believes the CFTC lacks jurisdiction over its case:
Binance Declares CFTC Lacks Jurisdiction in Case Dismissal Claim

Stay updated on how the CFTC cracked down on DeFi platforms:
U.S. Crypto Crackdown: CFTC Pursues DeFi Platforms

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.