What happened with the 20-member enforcement team at the CFTC Chicago office all resigning?

The CFTC Chicago enforcement team of 20 people has all left, once the top enforcement force in the cryptocurrency market, and is currently expanding regulation over crypto and prediction markets. A former lawyer states that this move is targeted layoffs because they have experience settling with FTX. The fines collected by the agency’s enforcement have dropped from $17.1 billion in 2024 to just $9.2 million in 2025.

The Shock of the 20-Person Enforcement Team Going to Zero

According to a report by Barron’s citing informed sources, the CFTC’s flagship office in Chicago handles the agency’s most complex enforcement actions. It once had 20 enforcement lawyers but has been drastically reduced to just one. On Monday, the last enforcement lawyer at the Chicago office resigned, confirmed by Barron’s reporters after initially publishing the story.

The complete disappearance of the 20-person enforcement team is extremely rare in the history of U.S. federal agencies. This is not normal personnel turnover or organizational restructuring but a total collapse of a core department. The Chicago office is not an ordinary regional office; it is regarded as the CFTC’s “top enforcer,” handling the most complex and impactful cases. Investigations and settlements involving major crypto cases like FTX have involved deep participation from the Chicago office.

The former CFTC enforcement lawyer who was laid off said the layoffs are targeted because the Chicago office has specialized expertise and a key role in securing billions of dollars in settlements from crypto companies including FTX. “If I were someone else, I’d start a crypto scam right now because there are no police patrolling,” the lawyer, who was the CFTC’s chief trial attorney for 26 years, told Barron’s.

This statement about “no police patrolling” is extremely shocking. It implies that the CFTC’s enforcement capability in crypto and prediction markets is now near zero. Even if fraud or manipulation is discovered, there is a lack of sufficient personnel and expertise to investigate and prosecute. This regulatory vacuum could embolden wrongdoers, ultimately harming investor interests and market integrity.

The Rise and Fall of the CFTC Chicago Office

Peak: 20 enforcement lawyers handling major cases like FTX

Layoffs: Over 21% led by Acting Chair Caroline Pham in 2025

Current: 0 enforcement lawyers, “top enforcement” completely vanished

Enforcement Collapse: From $17.1 Billion to $920,000 in Fines

The reduction of legal staff at the Chicago office, combined with the Trump-era focus of the CFTC, has significantly decreased the agency’s recoveries through enforcement actions. In fiscal year 2024, the CFTC secured $17.1 billion in recoveries for investors. By 2025, this figure plummeted over 99.9% to just $920,000.

Dropping from $17.1 billion to $920,000 is not just a “decline,” it’s a “collapse.” A 99.9% drop means the CFTC’s enforcement effectiveness is nearly zero. The reasons for this collapse may include: the dismantling of enforcement teams preventing new cases from being initiated, the Trump administration’s business-friendly policies reducing penalties, and some major settlements being counted in 2024 rather than 2025.

Much of the $17.1 billion recovery in 2024 likely came from FTX settlements. In the FTX bankruptcy case, the CFTC obtained billions of dollars in claims (though actual recoveries depend on bankruptcy liquidation). These “one-off large cases” caused the 2024 number to be abnormally high but also masked the decline in routine enforcement.

The $920,000 recovery in 2025 probably reflects the near-normal state of the CFTC after losing enforcement capacity. This figure is even insufficient to pay the salaries of 20 lawyers at the Chicago office (assuming each earns $200,000–$300,000 annually, totaling about $4–6 million). This “fines insufficient to sustain enforcement” vicious cycle further diminishes the agency’s enforcement functions.

The Absurdity of Expanding Regulation Without Resources

Experts recently told Decrypt that the CFTC also severely lacks the capacity to investigate the thousands of prediction markets it now seeks to regulate (most related to sports), including potential insider trading. At a Senate confirmation hearing in November, new Chair Mike Selig refused to promise the agency would need more resources to regulate crypto and prediction markets. Given that Senate Democrats and Republicans both expressed support for increased funding, Selig’s stance is especially notable.

“I don’t understand why saying we need more staff is so hard,” Senator Ben Ray Luján (D-New Mexico) told Selig. This rare bipartisan consensus shows even Congress recognizes the problem: expanding regulation without resources is an impossible task. Yet Selig still refused to explicitly request a budget increase, possibly aligning with the Trump administration’s “shrinking government” policies.

“Like other federal agencies, over the past year, some CFTC staff have chosen early retirement or delayed retirement,” a CFTC spokesperson told Decrypt. “These voluntary departures are the main reason for personnel changes.” The “voluntary departure” explanation is unconvincing. The entire team of 20 leaving voluntarily in a short period suggests more likely forced layoffs, organizational cuts, or deteriorating work conditions.

This large-scale layoff comes as the CFTC accelerates efforts to bring crypto and prediction markets under its jurisdiction. The same leadership that has been pushing to drastically cut staff has also been advocating for control over most crypto markets and large, controversial sports prediction platforms over the past year. This “expanding authority without increasing staff” strategy risks making the CFTC a “toothless regulator,” unable to effectively protect investors and leaving a significant regulatory vacuum for wrongdoers.

For crypto and prediction markets, this regulatory collapse is a double-edged sword. In the short term, reduced enforcement means fewer penalties and investigations, which benefits industry players. But in the long run, a lack of effective regulation could lead to rampant scams and manipulation, damaging industry reputation and scaring away institutional investors and mainstream users. A healthy market needs balanced regulation—neither overreach that stifles innovation nor complete laissez-faire that breeds chaos. The current state of the CFTC may be unable to do either.