Despite conducting only 11 enforcement actions in 2024 (down from 30 actions in 2023 and 21 actions in 2022), the SEC’s average fine for the year reached a record high of $426 million, according to the report. This increase underscores the SEC’s shift toward fewer but larger fines, with the goal of bringing high-impact enforcement actions that set precedents for the entire industry.
Billions in Fines for Crypto Industry Leaders
In addition to the landmark case against Terraform Labs and Do Kwon, the SEC has also imposed significant fines on other high-profile cryptocurrency companies.
In 2021, the SEC levied a $125 million fine against Ripple Labs, alleging that the company had sold XRP as an unregistered security. The case sparked intense debate within the crypto community, with Ripple arguing that XRP was a digital asset, not a security. The SEC’s action had broader implications for the digital asset landscape, as many other cryptocurrencies were also under scrutiny for potential securities law violations.
Telegram Group Inc. also faced a $1.24 billion fine from the SEC in 2019 for conducting an unregistered offering of its Telegram Open Network (TON) token. The SEC intervened to halt the project, citing violations of securities laws. This case served as a stark warning to other crypto projects seeking to raise funds through token sales, emphasizing the importance of complying with regulatory requirements.
SEC Targets Firms and Executives Alike
The SEC’s enforcement actions have not only targeted companies but also their executives.
Since 2020, the SEC has imposed a total of $5.08 billion in fines categorized under “Firm + Individual” penalties, highlighting its focus on penalizing both corporate structures and the decision-makers involved.