My Crypto Past – Latest Crypto & Blockchain News
Image default
Bitcoin Crypto Fines

The SEC To The MOON? Crypto Fines Increase 3,018%

  • The SEC has imposed a record $4.68 billion in fines related to cryptocurrency firms in 2024, marking a 3,000% increase compared to 2023.
  • The most significant contributor was a $4.47B settlement with Terraform Labs and its former CEO, Do Kwon, over violations related to the Terra cryptocurrency collapse.
  • The SEC carried out 11 enforcement actions in 2024, fewer than 2023’s 30, but the monetary impact of each case was significantly higher.
  • The amount collected in 2024 surpasses the combined fines imposed from 2013 to 2023.
  • Although there were high-profile cases like Terraform, nearly 46% of the fines imposed since 2020 have been under $1M, showing a range of enforcement actions.

Want a crypto investment with guaranteed growth? Find a way to tokenize the SEC, where fines increased by 3,018% from 2023 to 2024.

The self-appointed bouncer of the crypto world is handing out bigger and bigger fines. It’s also raking in billions of dollars in 2024 alone.

What does it all mean? Let’s take a closer look. 

SEC Imposes Record $4.68B in Crypto Fines for 2024

Add ‘SEC fines’ to ‘death’ and ‘taxes’ as sure-fire certainties. In a landmark year for cryptocurrency enforcement, the US Securities and Exchange Commission (SEC) imposed a record $4.68B in fines on crypto firms in 2024.

That’s a staggering 3,000% increase from the previous year and marks a continued shift in the SEC’s approach to regulating the fast-evolving digital asset space.

Source: Social Capital Markets

The SEC’s most notable action this year was the $4.47B settlement with Terraform Labs and its former CEO (Do Kwon) following the collapse of the Terra cryptocurrency ecosystem. 

This case alone accounted for nearly the entire 2024 fine total and is the largest enforcement action in the SEC’s history.

Fewer Actions, Bigger Fines

Despite launching fewer enforcement actions—11 in 2024 compared to 30 in 2023—the monetary impact of each case was significantly higher. 

This is no accident, as the SEC is purposefully moving towards fewer but more influential cases, focusing on making high-impact decisions that set legal precedents for the crypto industry.

The total fines collected this year eclipse the combined amount imposed by the SEC between 2013 and 2023.

Since 2013, the SEC has levied over $7.42B in fines; 63% of the fine amount ($4.68B) came this year alone.

Source: Social Capital Markets

In focusing on larger players and major violations, the SEC reinforces its role as a key regulator in the cryptocurrency space.

Summary – The SEC Casts a Broader Net to Catch Bigger Fish

While high-profile cases like Terraform Labs dominate the headlines, nearly 46% of fines imposed since 2020 have been under $1M, underscoring the regulator’s broad enforcement scope across different scales of infractions. 

The recent $225K fine against Galois Capital is one example.

The action fits the SEC’s pattern in 2024, targeting large and small firms strategically to cement its position as the enforcer of the crypto world.

Until the US government clarifies crypto legislation, the SEC will continue to be the default top dog.

SEC Coin, anyone?

References

  • SEC’s Enforcement vs Crypto Industry Report 2024 (Social Capital Markets)
  • SEC Charges Crypto-Focused Advisory Firm Galois Capital for Custody Failures (SEC)

Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.

Our Editorial Process

The Tech Report editorial policy is centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written by real authors.

Read More

Related posts

Interview: Mass Bitcoin Adoption In Latin America

DailyCrypto.news

New fake Ledger data breach emails try to steal crypto wallets

DailyCrypto.news

South Korea Targets Crypto Tax Evasion With New Cross-Border Reporting Rules

DailyCrypto.news

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.