If there is an institution that has 'made' more than $10 billion from the cryptocurrency market in one year, what would you think? Would you find it too unbelievable? But the fact is, the U.S. Commodity Futures Trading Commission (CFTC) really did it!
Recently, the CFTC announced that in the fiscal year 2024, they recovered up to $17.1 billion in fines and compensation through cryptocurrency enforcement actions! This is simply the 'Fast and Furious' version of the crypto world, except this time the protagonists are the regulatory agencies and those violating exchanges.
So, where does all this money come from? The answer is — FTX and Binance!
The once-mighty cryptocurrency giant FTX contributed $12.7 billion to the CFTC because of its collapse! Just thinking about it is chilling; what a huge hole that must be! And FTX founder SBF was sentenced to 25 years in prison for fraud and other charges. It truly echoes the old saying, 'What goes around, comes around.'
Next, Binance also couldn't escape. Although they reached a settlement with the CFTC, CZ personally paid a fine of $150 million, and Binance was also ordered to pay $1.35 billion in illegal gains and fines. It seems that even the 'big brother' of the crypto world has to bow down in the face of regulation.
In addition to FTX and Binance, the CFTC has also dealt with several major cryptocurrency cases this year. For example, the Voyager case, the Seneca Ventures Ponzi scheme, and the romance scam case. These cases make one lament that the depths of the crypto world are truly unfathomable!
So, what issues do these cases reflect? In my opinion, this is not just a simple case of regulatory violation. At a deeper level, while the cryptocurrency market is developing rapidly, the regulation is relatively lagging behind. This has given many people opportunities to exploit, as they engage in various illegal activities by taking advantage of market loopholes and regulatory gaps.
Fortunately, the CFTC and other regulatory bodies are gradually strengthening their regulatory efforts and cracking down hard on violators. This is not only to protect investors' legitimate rights and interests but also to maintain fairness and stability in the market.
Mlionr believes that as investors, while pursuing high returns, we must also remain vigilant and enhance our risk awareness. After all, in this cryptocurrency space full of opportunities and challenges, only those who can recognize the situation, seize opportunities, and avoid risks can ultimately succeed.
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The above content is for informational sharing only and does not constitute any investment advice! Investment involves risks, and caution is required when entering the market!
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