Cryptocurrency settlements with U.S. regulators have totaled roughly $32 billion since 2023, concentrated in a handful of blockbuster resolutions: a $12.7 billion judgment against FTX and Alameda Research, a $4.7 billion FTC judgment against Celsius, a $4.5 billion SEC judgment against Terraform Labs, and Binance’s $4.3 billion multi-agency plea deal.1CoinGecko. Top Crypto Enforcements US Most of that money is still working its way to defrauded customers through bankruptcy distributions, even as the SEC has shifted course and begun dismissing many of the pending cases inherited from the prior administration.
FTX and Alameda Research: $12.7 Billion
The single largest crypto enforcement resolution came in August 2024, when a federal court entered a consent order requiring FTX Trading Ltd. and Alameda Research to pay $12.7 billion in a CFTC action. The judgment broke down to $8.7 billion in restitution and $4 billion in disgorgement. To put victims first, the CFTC agreed not to seek additional civil penalties and subordinated its claims to those of defrauded customers, with disgorgement funds routed into a supplemental remission fund tied to the FTX bankruptcy plan.2CFTC. CFTC Secures Judgment Against FTX and Alameda
FTX’s bankruptcy plan was confirmed in October 2024, and distributions began in early 2025. In May 2025, FTX announced a second round of $5 billion in payments through BitGo and Kraken; customers are projected to recover between 54% and 120% of their allowed claims. A further distribution round is expected to begin on July 31, 2026.3Bloomberg. FTX to Distribute $5 Billion in Next Round of Creditor Payments4PwC. Business Restructuring FTX Digital Markets
Terraform Labs: $4.5 Billion
After a jury found Terraform Labs and co-founder Do Kwon liable for securities fraud, the SEC secured a judgment topping $4.5 billion. Terraform itself owed about $3.6 billion in disgorgement, $467 million in prejudgment interest, and a $420 million civil penalty. Kwon was personally liable for $110 million in disgorgement plus an $80 million penalty. Terraform agreed to wind down and distribute remaining assets through a liquidation plan supervised by the U.S. Bankruptcy Court for the District of Delaware.5SEC.gov. SEC Obtains Final Judgment Against Terraform Labs and Do Kwon
Celsius Network: $4.7 Billion
The FTC obtained a $4.7 billion judgment against crypto lender Celsius, alleging the company had falsely promised customers their deposits were safe and always available for withdrawal while spending more than $4 billion on operations, rewards, and high-risk investments. Celsius had also falsely claimed to hold a $750 million insurance policy. The judgment was suspended to let remaining assets flow back to consumers through bankruptcy.6FTC. FTC Reaches Settlement With Crypto Platform Celsius Network
Celsius exited Chapter 11 in November 2023 after nearly 98% of account holders approved the reorganization plan. Distributions of more than $3 billion in cryptocurrency and fiat began flowing to creditors, some of whom also received stock options in a newly formed Bitcoin mining company, Ionic Digital Inc.7Fordham Journal of Corporate and Financial Law. Settling Scores: Celsius Chapter 11 Debt Resolution
Binance: $4.3 Billion and a Criminal Guilty Plea
Binance’s November 2023 resolution was the most complex multi-agency crypto enforcement action to date. The exchange pleaded guilty to conspiracy to violate the Bank Secrecy Act, failure to register as a money transmitting business, and violating the International Emergency Economic Powers Act by facilitating more than $898 million in trades between U.S. users and users in sanctioned jurisdictions including Iran, North Korea, and Syria.8U.S. Department of Justice. Binance and CEO Plead Guilty to Federal Charges in $4B Resolution
DOJ penalties totaled roughly $4.3 billion: a $1.8 billion criminal fine plus $2.5 billion in forfeiture. FinCEN separately assessed a $3.4 billion civil money penalty for willful Bank Secrecy Act violations, and OFAC imposed a $968 million penalty for more than 1.67 million apparent sanctions violations. Binance admitted it had never filed a suspicious activity report despite more than 100,000 suspicious transactions tied to terrorist organizations, ransomware, and child sexual abuse materials.9U.S. Department of the Treasury. Treasury Announces Largest Settlement in Department History With Virtual Asset Service Provider10FinCEN. FinCEN Announces Largest Settlement in U.S. Treasury Department History
The company was placed under a five-year monitorship with Treasury retaining access to its books, records, and systems, required to fully exit the United States, and required to conduct a lookback of previously unreported suspicious activity. An additional $150 million penalty was suspended pending compliance.9U.S. Department of the Treasury. Treasury Announces Largest Settlement in Department History With Virtual Asset Service Provider
Founder Changpeng Zhao pleaded guilty to failing to maintain an effective anti-money laundering program and resigned as CEO. On April 30, 2024, he was sentenced to four months in prison, well below the three years prosecutors had sought, and paid a $50 million fine.11Banking Dive. Changpeng Zhao Sentenced to 4 Months in Prison He completed his sentence in September 2024. On October 23, 2025, President Donald Trump issued him a full pardon.12FactCheck.org. Addressing Trump’s Claims About the Pardon of Binance Founder Separately, the SEC voluntarily dismissed its civil case against Binance and Zhao with prejudice on May 29, 2025, with no admissions or ongoing obligations.13SEC.gov. SEC Dismisses Action Against Binance Holdings Limited
Ripple Labs: $50 Million and a Vacated Injunction
In May 2025, the SEC and Ripple Labs settled one of the longest-running crypto enforcement fights in the agency’s history. Ripple agreed to pay $50 million, and $75 million of a previously imposed $125 million fine held in escrow was returned to the company. The agreement also vacated an injunction that had barred Ripple from further securities law violations, and both sides moved to dismiss their pending appeals.14ABC News. SEC Settles Case With Crypto Firm With Ties to White House
Commissioner Caroline Crenshaw dissented, calling the deal “a tremendous disservice to the investing public” and arguing it “razes” the court’s prior judgment and leaves the agency without recourse if Ripple resumes unregistered XRP sales to institutional investors. She described the settlement as part of a “programmatic disassembly of the SEC’s crypto enforcement program.”15SEC.gov. Statement on the Settlement With Ripple Labs, Commissioner Caroline A. Crenshaw The SEC itself described the deal as advancing its “ongoing efforts to reform and renew its regulatory approach to the crypto industry.”16Banking Dive. Ripple SEC Crenshaw Dissent Settle 75 Million Return Penalty
Other Notable Settlements
Galaxy Digital: $200 Million
In March 2025, the New York Attorney General reached a $200 million settlement with Galaxy Digital Holdings over alleged market manipulation of the Luna token. The state alleged Galaxy and founder Michael Novogratz promoted Luna to retail investors through social media, podcasts, and even a tattoo Novogratz got at a $100 price target, while quietly selling millions of tokens acquired at a discount from Terraform Labs. Galaxy is said to have disposed of nearly all its Luna holdings before the May 2022 collapse, realizing hundreds of millions in profit.17Office of the New York Attorney General. Galaxy Digital Holdings Assurance of Discontinuance Galaxy must pay the $200 million in disgorgement over three years, prominently disclose its financial interests in public statements about crypto, retain crypto-related communications for at least six years, and obtain legal opinions on whether digital assets qualify as securities before trading them.18Debevoise. Galaxy Settles With NYAG as State Crypto Enforcement Continues
Coinbase: $100 Million
In January 2023, the New York State Department of Financial Services fined Coinbase $50 million and required an additional $50 million investment in its compliance program. Regulators said Coinbase had treated background checks as a “simple check-the-box exercise,” allowed more than 100,000 unreviewed transaction monitoring alerts to pile up, and routinely filed suspicious activity reports months late. An independent monitor was installed.19New York State Department of Financial Services. DFS Superintendent Harris Announces Coinbase Consent Order
Bittrex: $24 Million
In August 2023, Bittrex, its co-founder William Shihara, and its foreign affiliate Bittrex Global settled SEC charges for $24 million: $14.4 million in disgorgement, $4 million in prejudgment interest, and a $5.6 million civil penalty. The SEC alleged Bittrex had operated as an unregistered exchange, broker, and clearing agency. The company had already filed for bankruptcy after winding down U.S. operations.20Legal Dive. Bittrex Settles With SEC for $24M
TradeStation and Robinhood
In February 2024, TradeStation Crypto paid $1.5 million to resolve a multistate investigation led by California and Washington on behalf of all 51 U.S. jurisdictions over an unregistered crypto interest-earning program, with the SEC entering a concurrent $1.5 million settlement.21California Department of Financial Protection and Innovation. California Secures $1.5 Million Multistate Securities Settlement Against Crypto Platform TradeStation In September 2024, Robinhood Crypto paid $3.9 million to the California Attorney General over allegations that it failed to allow customer cryptocurrency withdrawals and misled users about order routing. It was the state’s first enforcement action against a crypto company.22Office of the California Attorney General. Attorney General Bonta Secures $3.9 Million Settlement With Cryptocurrency Company
Where Enforcement Stands Now
The pattern of blockbuster settlements has broken. Under Chairman Paul Atkins and enforcement director Margaret Ryan, the SEC has characterized the Gensler-era crypto docket as “regulation by enforcement” and refocused on traditional fraud and market manipulation with direct investor harm. In fiscal year 2025, the agency brought only 13 crypto-related enforcement actions, down 60% from 33 in 2024, and total crypto penalties fell to $142 million, less than 3% of the prior year’s total.23Cornerstone Research. SEC Cryptocurrency Enforcement Update Beginning in February 2025, the SEC dismissed seven major inherited enforcement actions, including cases against Coinbase, Binance, Consensys, and Kraken.24SEC.gov. SEC Announces Enforcement Results for Fiscal Year 2025
The CFTC has begun revisiting past outcomes too. In May 2026, the agency joined Gemini Trust Company in asking a federal judge to vacate a January 2025 consent order that had required Gemini to pay a $5 million penalty. After an internal review, the CFTC concluded the original complaint should not have been filed, finding that it had relied on a whistleblower account lacking credibility and had pursued Gemini, which the agency now calls a “fraud victim,” rather than the actual fraudsters. The $5 million already paid will not be returned, but both sides are seeking to dissolve the injunction and other forward-looking provisions.25CFTC. CFTC and Gemini Trust Company File Motion for Relief From Judgment
State attorneys general in New York, California, Minnesota, and Michigan have stepped into what some observers describe as the vacuum left by the federal retreat, using state consumer protection and securities laws to bring their own cases.18Debevoise. Galaxy Settles With NYAG as State Crypto Enforcement Continues For victims of the collapsed firms, the settlements from the 2022–2024 surge remain the main source of recovery, with distributions from the FTX and Celsius bankruptcies still being paid out.