In 2024, the U.S. Securities and Exchange Commission (SEC) decided to impose crypto firms with enforcement actions totaling a shocking $4.7 billion — a 3000% increase compared to 2023. Yes, we didn't make a mistake in the number of zeros!
🇺🇸 U.S. SEC has already fined crypto firms nearly $4.7B in 2024 despite fewer enforcement actions than in 2023. 👀 pic.twitter.com/wUQsR87JFZ
— Crypto Crib (@Crypto_Crib_) September 10, 2024
The total value of penalties SEC secured in 2024 now eclipses the combined fines collected between 2013 and 2023.
These fines included asset forfeitures, returns of ill-gotten gains, civil penalties, settlements, and even pre-judgment interest.
The "firm + individual" penalties category alone raked in $5.08 billion over 63 enforcement actions, showing the SEC isn't just going after companies, they're also shaking up the C-suites.
A deep dive into SEC fines for crypto companies from 2013 to 2024 reveals a significant uptick in regulatory scrutiny. Regulators have had enough of turning a blind eye to big firms and serious violations, with penalties hitting all-time highs in recent years.
Most Expensive Crypto Penalties
If you’ve ever grumbled about getting a ticket for parking illegally or speeding, trust me, that’s just pocket change. Take a look at the fines handed down to the crypto world:
Terraform Labs PTE, Ltd. and Do Kwon
The SEC hit Terraform Labs and its founder, Do Kwon, with a mind-blowing $4.68 billion fine for misleading investors and offering unregistered securities. This case marked a major victory for regulators in holding firms accountable for breaking securities laws, especially after the collapse of TerraUSD (UST) and its ecosystem, which led to massive financial losses.
Telegram Group Inc. and TON Issuer Inc.
The SEC fined Telegram $1.24 billion after determining the company illegally sold unregistered digital tokens during its initial coin offering (ICO) for TON (Telegram Open Network). The SEC swooped in, stopping the project and sending a clear message about the importance of compliance when raising funds through token sales.
GTV Media Group Inc., Saraca Media Group Inc., and Voice of Guo Media Inc.
These organizations were fined $539.43 million for running an illegal unregistered offering of common stock in GTV and digital asset securities. The SEC’s actions aimed to cut through the opacity and regulatory non-compliance, protecting investors from fraud and misinformation.
Ripple Labs Inc.
Ripple Labs was slapped with a $125 million fine for selling XRP as an unregistered security. This high-profile case sparked debates about whether XRP should be classified as a security under U.S. law. The SEC’s enforcement sent shockwaves, raising questions about the status of many other digital assets.
John Barksdale and JonAtina Barksdale
The Barksdale’s were fined $102.64 million for running a fraudulent ICO, promising sky-high returns through a cryptocurrency trading platform that didn’t quite deliver. The SEC stepped in to protect investors from this scam, reinforcing the need for stricter oversight of ICOs and token sales.
The question now is who will be next in line to face the SEC's billion-dollar punishment? So, next time you curse that parking ticket, just remember — you could be dealing with billions in fines!
Dayo Paul
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