The SEC has secured $4.7 billion in crypto-related enforcement actions in 2024, reflecting an extraordinary 3,018% increase from last year, according to Social Capital Markets.
This surge is primarily attributed to the SEC’s record-breaking $4.47 billion settlement with Terraform Labs and its former CEO, Do Kwon, in June, marking the agency’s largest enforcement action ever.
The total includes forfeiture, civil penalties, settlements, disgorgement, and pre-judgment interest. Despite the massive dollar increase, the number of enforcement cases dropped, with only 11 actions taken against crypto firms, down from 30 last year.
This shift suggests a focus on fewer but more significant penalties aimed at setting industry-wide precedents.
The previous largest fine was a $1.24 billion penalty issued to Telegram in 2019. Since then, crypto-related fines had remained between $5 million and $35.2 million, until the Terraform case dramatically raised the average.
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