SEC Smashes Records with $8.2 Billion in Fines

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SEC Smashes Records with $8.2 Billion in Fines, Thanks to Terraform Labs

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 25, 2024

Key Takeaways

SEC secured a record $8.2 billion through fines in 2024, with $4.47 billion from Terraform Labs’ fraud case tied to its 2022 blockchain collapse;
Without Terraform’s settlement, the SEC’s financial recovery would’ve hit its lowest point since 2013 at $3.72 billion;
$6.1 billion in disgorgement marked a record, reinforcing the SEC's focus on returning unlawful profits to affected investors.

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SEC Smashes Records with $8.2 Billion in Fines, Thanks to Terraform Labs

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The US Securities and Exchange Commission (SEC) reached a milestone, securing $8.2 billion in financial penalties during the fiscal year 2024.

This surge was primarily attributed to a settlement with Terraform Labs and its former CEO, Do Kwon.

Terraform Labs was at the center of the SEC’s landmark enforcement action, resulting in a $4.47 billion settlement. This case began from allegations of fraud related to the 2022 collapse of Terraform’s blockchain ecosystem, which caused massive financial losses.

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Without this settlement, the SEC’s total for the year would have fallen to $3.72 billion, marking its lowest financial recovery since 2013. That year, the agency brought in $3.4 billion through fines and penalties.

Breaking down the figures, the SEC obtained $2.1 billion in penalties and a record-setting $6.1 billion in disgorgement, which involves returning unlawful gains to affected investors. The SEC emphasized its commitment to pursuing wrongdoing, as highlighted in a statement from outgoing Chair Gary Gensler.

The US cryptocurrency industry has been closely monitoring the SEC’s actions, with many anticipating a shift in regulatory priorities.

The SEC’s aggressive stance on cryptocurrency has sparked intense debate and scrutiny. On November 15, 2024, a coalition of 18 US states has taken action against Gary Gensler’s crypto enforcement strategy. What challenges are they bringing to the table? Read the full story.