The US SEC Imposed a Record $4.68 Billion in Fines on Crypto Companies in 2024

This brings the total fines levied by the regulator since 2013 to $7.42 billion, with 2024 accounting for 63% of the total.

The US Securities and Exchange Commission (SEC) imposed a record-breaking $4.68 billion in fines against crypto companies in 2024, a 3018% increase from the $150.27 million levied in 2023, according to a report by Social Capital Markets.

This brings the total fines imposed by the SEC on crypto companies since 2013 to $7.42 billion, with 2024 alone accounting for an astonishing 63%. The steep rise in fines reflects the SEC’s verstärkte Kontrolle over the crypto sector as it seeks to enforce securities regulations in the rapidly growing digital asset market.

Of the total fines imposed in 2024, a record $4.68 billion penalty was levied against Terraform Labs and its co-founder Do Kwon for offering unregistered securities and misleading investors in a case that marks the highest-ever fine by the SEC on a crypto entity.

Other major cases include the SEC's $1.24 billion fine against Telegram in 2019 for conducting an unregistered token sale and a $125 million penalty against Ripple Labs in 2021 for selling XRP as an unregistered security.

In 2022, the SEC fined John and JonAtina Barksdale $102.64 million for orchestrating a fraudulent initial coin offering (ICO), highlighting the agency's intent to prosecute both firms and individuals involved in violations.

According to the report, the SEC has levied a combined $5.08 billion in fines across 63 enforcement actions targeting both firms and individuals since 2013. Notably, the agency has shifted its focus toward holding company executives accountable alongside the organizations they manage.

Highlighting the SEC’s intensifying oversight, the report, which analyzed SEC enforcement actions from 2013 to 2024, showed a dramatic increase in fines. From a relatively modest $150.27 million in fines in 2023, the total spiked by 3018% this year.

This marks a significant shift in the SEC’s regulatory approach, with the average fine for crypto-related violations soaring from $5 million per case in 2023 to an average of $426 million in 2024.

The report also highlighted a shift in the SEC’s enforcement strategy in recent years, moving from smaller penalties against mid-sized firms to larger fines in high-profile cases.

In the early years of regulation, annual fines were relatively low, with just $40.7 million imposed in 2013. However, enforcement ramped up with the rise of initial coin offerings (ICOs) and token sales, leading to a surge in penalties, including $1.34 billion in 2019.

By 2024, the SEC has firmly established a trend toward fewer but much larger fines. This shift signals the SEC’s focus on targeting significant violations involving major players in the crypto space, with a clear intent to set industry-wide precedents.

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