Crypto: The SEC Strikes Hard With $4.68 Billion In Fines In 2024

Investing in crypto is a risky bet, both for investors and for companies. While the former juggle with the volatility of digital assets, the latter can be wiped out in the blink of an eye by regulators. The SEC, the relentless American financial watchdog, has never been as harsh, handing out record fines this year, notably to Terraform Labs and its founder, Do Kwon.

The SEC Cracks Down in 2024 with Historic Fines

Is the SEC really abandoning the battle against cryptos? Not really. Indeed, the year 2024 marks a turning point in the SEC’s crusade against the crypto industry. With $4.68 billion in fines, accounting for 63% of the total accumulated since 2013, the commission has pulled out the heavy artillery. 

The most emblematic case? Terraform Labs and its co-founder Do Kwon, guilty of offering unregistered securities and deceiving investors. 

An exemplary punishment that reflects the SEC’s increasingly tough approach.

• 3018% increase in fines between 2023 and 2024
• $426 million average fine per case
• $7.42 billion in penalties since 2013

In comparison, the year 2023 almost seemed like a break with only $150 million in fines. 

This escalation is part of the SEC’s desire to strictly regulate the digital asset market. Gone are the small sanctions, making way for mega-fines to make an impression and deter actors from taking liberties with the law.

A Tough Crypto Strategy: Targeting the Big Fish

Since its timid beginnings in 2013, when it handed out only $40.7 million in fines, the SEC has greatly evolved. The goal is now clear: target the big fish in the crypto industry. 

In 2019, Telegram was fined $1.24 billion, and Ripple, the issuer of the XRP crypto, was fined $125 million in 2021. In recent years, the agency no longer just hits companies, it also targets executives, as evidenced by the Barksdale case in 2022.

In 2019, Telegram was fined $1.24 billion, and Ripple, the issuer of the XRP crypto, was fined $125 million in 2021. In recent years, the agency no longer just hits companies, it also targets executives, as evidenced by the Barksdale case in 2022.