CFTC Filed 96 Cases in FY 2023 Regarding Digital Assets Fraud and Manipulation

CS Web Team
By CS Web Team 3 Min Read

The CFTC released its enforcement statistics for the fiscal year 2023, noting a record number of cases involving digital assets and actions taken against manipulation.

  • In the field of digital assets, the CFTC claims to be the "premier enforcement agency."
  • The regulator investigated nearly half a dozen cryptocurrency-related incidents in FY 2023.
  • High-profile enforcement actions were a part of these cases.

The Commodity Futures Trading Commission (CFTC) announced its enforcement results for Fiscal Year 2023. Over $4.3 billion in fines, restitution, and disgorgement were assessed as a result of the CFTC’s 96 enforcement proceedings, which accused participants in fraud, manipulation, and other serious offenses in a variety of markets, including the swaps and digital asset markets.

A record number of lawsuits involving digital assets were brought by the CFTC, targeting Ponzi schemers and large exchange scams, among other things. Additionally, it achieved a first-ever legal victory over a digital asset futures marketplace and a decentralized autonomous organization.

The CFTC persisted in requiring registrants to fulfill their regulatory duties, which included oversight, risk assessment, and documentation. Additionally, it filed lawsuits against spoofing and manipulating a variety of markets, including those for energy, interest rates, and precious metals.

CFTC Achievements in 2023

A permanent injunction against a foreign bank for spoofing and a jury trial victory against a former trader for spoofing and commodities fraud are just two examples of the precedent-setting court rulings the CFTC has secured in complicated litigation.

CFTC Chairman Rostin Behnam stated in a statement that the agency’s enforcement strategy has been “vigorous, innovative, and effective in protecting the American public and ensuring market integrity.” “Reckoners from all over the world, all asset classes, and all regulatory domains have been targeted by us.”

Since the U.S. Treasury market is the biggest and most liquid government securities market in the world, the CFTC has worked to strengthen its resilience, as seen by the enforcement results.

By releasing a joint report on the market turbulence in March 2020 and putting out new regulations for central clearing and reporting, the CFTC and other authorities have improved the efficiency and openness of the Treasury market.

The CFTC is committed to mitigating the risks that climate change poses to the derivatives markets and the underlying commodities markets, as evidenced by the enforcement results obtained to date.

Information on how climate-related financial risk relates to the CFTC’s statutory mandate and how it may best assist the shift to a low-carbon economy has been requested by the public.

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