The Commodity Futures Trading Commission (CFTC) has announced record monetary relief of over $17.1 billion for fiscal year 2024. This amount includes $2.6 billion in civil monetary penalties and $14.5 billion in disgorgement and restitution, primarily due to digital asset cases that resulted in the agency's largest recovery ever.
During FY 2024, the CFTC initiated 58 new actions covering various areas such as digital asset commodities, fraud in voluntary carbon credit markets, complex market manipulation, and significant compliance cases. The agency also achieved substantial litigation victories and recoveries.
Chairman Rostin Behnam stated, "The CFTC remains steadfast in its duties to protect customers and vigorously oversee CFTC-regulated markets critical to the health of the U.S. economy." He emphasized the importance of adapting to evolving markets influenced by disruptive technology.
Director of Enforcement Ian McGinley noted, "Our actions in FY 2024 reflect our commitment to holding recidivist actors accountable, obtaining meaningful monetary relief and sanctions, and implementing robust remediation measures."
In October 2023, an advisory was issued providing guidance on enforcement resolution recommendations related to penalties, monitors and consultants, and admissions in enforcement actions.
The CFTC continued its focus on digital asset commodities with significant actions against entities like FTX and Binance. It also addressed manipulative conduct across various markets including gasoline, fuel oil, agricultural commodities like cotton and oats, as well as voluntary carbon credits.
Efforts were made to ensure compliance with reporting requirements and risk management processes among registrants. The agency also tackled misconduct involving confidential information through enforcement actions against companies like Trafigura Trading LLC.
A new Surveillance and Enforcement Data Analytics Office was established within the Division of Enforcement to enhance surveillance capabilities using data analytics.
Collaboration with criminal and regulatory authorities remained a priority for the CFTC's enforcement program. A notable example was a joint action with state securities regulators against a precious metals dealer involved in a fraudulent scheme targeting elderly individuals.
The Whistleblower Program saw significant activity with over 1,700 tips received this year. The program granted awards totaling over $42 million based on successful enforcement actions resulting from whistleblower leads.
An addendum provides a summary table of the 58 new actions taken during FY 2024 along with details on digital asset-related conduct cases.
