The U.S. Securities and Exchange Commission (SEC) has ramped up its enforcement efforts against crypto firms in 2024, collecting $4.7 billion in fines—a massive 3,018% increase from the previous year.
Increase in Fines for Crypto Companies
This year’s hefty total was largely driven by the landmark settlement with Terraform Labs, the company behind the Terra ecosystem collapse and the UST stablecoin de-pegging. As part of the settlement, Terraform was ordered to pay a hefty $4.47 billion fine.
Key Figures and Facts
The report stated that since 2013, the SEC has levied a total of $7.42 billion in fines, with 63%, or $4.7 billion, coming in 2024 alone. The 11 enforcement actions taken this year resulted in an average fine of $426 million, dwarfing previous years’ averages.
SEC's Policy Towards Cryptocurrencies
It is important to note that the average fine fluctuated between 2019 and 2024. The increase in fines in recent years indicates a shift toward more stringent measures by the SEC concerning violations in the cryptocurrency industry.
The SEC's approach toward crypto firms has become increasingly stringent, as evidenced by the significant increase in fines in 2024. This is likely to have a substantial impact on the entire cryptocurrency industry.
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