The U.S. Securities and Exchange Commission (SEC) has had a record-breaking year in 2024, collecting nearly $4.7 billion in enforcement actions against cryptocurrency firms and executives. This represents a staggering 3,000% increase compared to the $150.3 million in fines imposed in 2023.
SEC’s Massive $4.7 Bln Settlement
A major contributor to the SEC’s record-setting year is the $4.47 billion settlement with Terraform Labs and Do Kwon in June 2024. According to a September 9 report from Social Capital Markets, this was the SEC’s largest enforcement action to date.
The settlement alone accounted for most of the fines the SEC imposed in 2024. Meanwhile, this strategic shift toward high-impact cases is evident. Despite 19 fewer enforcement actions than in 2023, the SEC’s penalties have skyrocketed.
The regulator’s 11 actions in 2024 reflect a more targeted approach, aiming for larger settlements and fines that send a clear message to crypto firms that non-compliance will not be tolerated.
Previous High-Profile Cases
This isn’t the first time the SEC has targeted a major player in the crypto industry. In 2019, the agency hit Telegram with a $1.24 billion fine, which included $18.5 million in civil penalties and $1.2 billion in disgorgement returned to investors. That case marked a significant increase in the average fine, which rose by nearly 2,000% year-over-year.
In recent years, the SEC has targeted other big names like Ripple Labs, GTV Media Group, and fraudsters John and Tina Barksdale, all of whom faced enforcement actions exceeding $100 million.
Smaller Fines Still Common
While the SEC has shifted its focus to larger cases, smaller fines remain common. Since 2020, 46% of the penalties imposed have been below $1 million, and 30% fell between $1 million and $10 million. Despite this, the average fine has surged to over $420 million in 2024 due to high-profile cases like Terraform Labs.
As the SEC continues its crackdown on the crypto industry, the rise in enforcement actions shows no sign of slowing, and the regulator is expected to remain a key player in shaping the future of cryptocurrency regulation.
