The U.S. Commodity Futures Commission (CFTC) is one of the main regulators engaged in the cryptocurrency space. Between the first quarter of 2015 and the second quarter of 2023, the CFTC brought 100 actions against virtual currency market participants, including traders, exchanges, and service providers.
- Of the 100 actions between Q1 2015 and Q2 2023, 20 were litigated in the U.S. disctrict courts. The other 60 actions did no progress to the courts - 15 were resolves as cimultaneous CFTC orders and settlements, and the remaing 45 were CFTC complaints and notices that do not appear to have progresses further.
- The Majority of actions, 60 out of 100, involved an alleged failure to register with the CFTC.
- Additionally, 54 of the 100 actions involved an allegedly fraudulent scheme, while 21 involved allegedly illegal retail or off-exchange tansactions.
- Of the 40 cases litigated in the U.S. courts nearly half (45%) occurred in the state of New York.
Between Q1 2022 and Q2 2023, fines and restitution amounts ordred by the CFTC or U.S. distric courts totaled over $3.7 billion.
- As of August 6, 2023, 20 of the 40 cases litigated in U.S. district courts ha reached resolution.
- The median time from the date of the complaint filing to the case resolution of the 20 cases resolved in U.S. district courts were 382 days.
- Between Q1 2022 and Q2 2023, fines and restitution amounts ordered by the CFTC or U.S. district courts totaled over $3.7 billion across 14 cases (including partial resolution).
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The views expressed herein are solely those of the authors and do not necessarily represent the views of Cornerstone Research.
