The enforcement results from FY 2023 were released by the CFTC, which include a record setting number of digital asset cases, manipulation actions, and precedent-setting court decisions in complex litigations.
According to a press release published by the Commodity Futures Trading Commission, there were 96 enforcement actions filed charging fraud, manipulation, and other violations of diverse markets such as digital assets and swaps markets. Over the fiscal year, $4.3 billion in penalties, restitution and disgorgement were created. "The Commission continues to remain laser-focused on stopping and deterring fraud and manipulation in the U.S. I am proud of the Division of Enforcement’s groundbreaking work in the digital asset space," said Chairman Rostin Behnam. He added that "the CFTC will continue to take all necessary action to protect customer funds and ensure fair prices for U.S. consumers."
In the digital asset litigation victories, some of the largest cases included charging Samuel Bankman-Fried and FTX with fraud, charging Binance with operating an illegal digital asset exchange, and charging Celsius and its former CEO with fraud. The fraud scheme that FTX created caused a loss of over $8 billion in FTX customer assets.
According to the same press release by CFTC, its enforcement program focuses on collaborating with self-regulatory organizations and state, federal, and international authorities to protect markets. The CFTC has filed joint civil enforcement actions against a precious metals dealer, its CEO, and senior account executive for a $61.8 million fraudulent scheme. Moreover, it has granted seven applications for whistleblower awards totaling approximately $16 million in FY 2023.
Since its inception,the CFTC has issued 41 orders granting awards totaling almost $350 million with total sanctions ordered in all whistleblower-related enforcement actions surpassing the $3 billion milestone.The DOE uses specialized task forces to ensure consistency while identifying best practices and developing new approaches based on lessons learned. Notably, two new task forces were established by the DOE in FY 2023: the Cybersecurity and Emerging Technologies Task Force and the Environmental Fraud Task Force.
