SEC Nets Record $8.2B in Enforcement Actions by 2024

The US Securities and Exchange Commission (SEC) has announced that it secured $8.2 billion in enforcement actions by 2024.

This is the largest amount ever recovered by the commission, with significant contributions coming from the high-profile Terraform Labs case.

Terraform Labs leads SEC recoveries

According to a Nov. 22 report, SEC enforcement actions for 2024 included 583 cases, a 26 percent decrease from the previous year. Among those, 431 were stand-alone actions, 93 were follow-up cases against individuals with orders against them, including criminal convictions and civil orders, and another 59 were against companies that had failed to file the necessary paperwork with the agency.

Gary Gensler, outgoing chairman of the regulator, emphasized that its main priority is to protect investors, especially in the cryptocurrency sector, which has faced increasing risks due to its rapid growth.

“The Enforcement Division is a constant cop on the beat, following the facts and the law wherever they lead to hold offenders accountable,” Gensler said.

Despite the drop in cases, the SEC recovered $6.1 billion in disgorgement and $2.1 billion in penalties. More than half of the total came from one of the largest cryptocurrency-related fraud incidents involving Terraform Labs, a blockchain technology company co-founded by Do Kwon and Daniel Shin.

The SEC had accused the company and Do Kwon of committing a large-scale fraud that caused billions of dollars in investor losses when its algorithmic stablecoin TerraUSD (UST) and its associated cryptocurrency collapsed , MOON. The two sides were ordered to pay the regulator $4.5 billion after a court battle.

The report also revealed actions against other crypto-related scams, such as HyperFund and NovaTech Ltd. The two, which purport to be crypto investment platforms, raised more than $2.2 billion from investors around the world. All of its directors have been accused of operating fraudulent schemes, and HyperFund co-founder Brenda Chunga has opted to settle the charges.

A strategic change

According to a separate statement from Social Capital Markets, while the number of crypto-related cases filed by the SEC fell to 11 in 2024, fines associated with these actions increased by more than 3,000% compared to 150.3 billion dollars by 2023.

Social Capital Markets also cited the Terraform Labs deal as the main reason for the dramatic increase in fines paid. Additionally, his report suggested that the SEC is shifting its focus toward more important and influential cases, signaling a strategic shift in the agency’s enforcement approach.

Under Gensler, the financial watchdog earned a tough reputation for its intense scrutiny of crypto companies. However, despite the crackdown, the U.S. digital assets industry remains optimistic that regulatory pressures will ease, especially after the re-election of President Donald Trump.

Trump previously promised to fire Gensler as one of his campaign promises. Meanwhile, the under-fire regulator recently confirmed he will step down in January 2025, just in time for Trump’s inauguration.

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