2024 has turned out to be a record year for the US SEC in its enforcement against cryptocurrency firms.
The US regulator has reportedly imposed around $4.7 billion worth of fines on crypto executives and companies this year. Let’s explore more about this news from the SEC.
$4.6B Terraform Labs Settlement Boosts 2024 Crypto Fines
The bulk of this figure came from the SEC’s $4.6 billion settlement with Do Kwon’s Terraform Labs a few months ago. The data, shared by Social Capital, claims the SEC has collected over $7.2 billion in fines since it began overseeing the industry in 2013.
The SEC has carried out a total of 11 enforcement actions against crypto in 2024. The regulator has bagged a 3,018% increase from the $159.3 million in fines it secured in 2023. Interestingly, the SEC has taken 19 fewer actions against crypto firms in 2024.
Breakdown of Fines
The total fines for 2024 include several parts such as forfeiture, disgorgement, civil penalties, settlements, and interest. The report observed a shift in the regulator’s enforcement approach. The SEC appears to focus on fewer but bigger cases. The regulator mostly targets cases that can set examples for the whole industry.
The SEC has scored some heavy fines in recent years. For example, it fined Telegram $1.24 billion. This included $18.5 million in civil penalties and $1.2 billion paid back to investors. The SEC also fined GTV Media Group, Ripple Labs, and John and Tina Barksdale over $100 million each.
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