Recently, several prominent crypto companies have faced significant fines in the United States. Raising questions about compliance and the future of the industry.
Let’s delve into the top five crypto companies that have recently been slapped with substantial fines.
1) Celsius – $4.7 Billion
Celsius found itself in the regulatory crosshairs, resulting in a whopping $4.7 billion fine. The penalty stemmed from allegations related to non-compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. Celsius faced accusations of failing to adequately verify customer identities and allowing illicit activities to take place on its platform. More info here.
Top 10 Crypto Enforcement Actions in the US 🇺🇸
1. Celsius – $4.7B
2. Binance – $4.3B
3. Voyager – $1.65B
4. Telegram – $1.24B
5. Coinbase – $100M
6. BlockFi – $100M
7. BitMEX – $100M
8. Nexo – $45M
9. Tether – $41M
10. Kraken – $30M— CoinGecko (@coingecko) November 27, 2023
2) Binance – $4.3 Billion
Binance incurred a hefty $4.3 billion fine, marking a significant setback for the exchange giant. The fine was primarily associated with concerns over lax AML procedures and the facilitation of transactions involving prohibited jurisdictions. Binance, already under scrutiny in multiple jurisdictions, now faces the challenge of overhauling its compliance practices to meet regulatory expectations. More info here.
3) Voyager – $1.65 Billion
Voyager, a crypto brokerage platform, faced a substantial $1.65 billion fine. This is due to alleged shortcomings in its regulatory compliance framework. The company, which offers commission-free trading services, was accused of not implementing adequate controls to prevent market manipulation. And failing to provide accurate and timely information to its customers. So, the fine serves as a reminder of the importance of robust compliance measures in the crypto brokerage sector. More info here.
4) Telegram – $1.24 Billion
Telegram was slapped with a $1.24 billion fine. The penalty was a result of the SEC lawsuit. Which alleged that Telegram conducted an unregistered securities offering through its initial coin offering (ICO). So, the SEC argued that Telegram’s ICO violated federal securities laws by failing to register the offering and provide necessary disclosures to investors. More info here.
What are the biggest crypto enforcement actions in the US? 🇺🇸
In the wake of the recent #Binance settlement and the resignation of its CEO, let's dive into the numbers to examine the largest settlements based on monetary charges.
Read the full study: https://t.co/GOFnJuZcDg pic.twitter.com/OpzJFYJjmd
— CoinGecko (@coingecko) November 27, 2023
5) Coinbase – $100 Million
While relatively smaller in comparison to others on this list, Coinbase faced a $100 million fine. The penalty was related to allegations of misleading customers with inaccurate representations of its trading volumes. And providing false or misleading information about its exchange practices. So, the fine highlights the importance of transparency and accurate reporting in the crypto industry, even for established platforms like Coinbase.
Conclusions
While these fines may represent setbacks for the affected companies, they also signal a shift towards a more mature and regulated crypto landscape. Industry players are now compelled to prioritize compliance, implement robust internal controls, and work closely with regulators.
Finally, as the crypto industry navigates these regulatory challenges, the hope is that these lessons will contribute to a more sustainable and trustworthy future for digital assets.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
