Terraform Labs accounted for 56% of SEC fines $XRP $XLM $DOGE

In the SEC's report on enforcement actions, it was noted that the $4.5 billion fine against Terraform Labs constituted 56% of the total financial sanctions for the year. The case related to the collapse of Terra/Luna in 2022 became the largest monetary penalty ever received by the SEC following litigation.

Terraform Labs and its CEO Do Kwon were found guilty of deceiving investors. The SEC called this incident one of the most significant cases of securities fraud in its history. The collapse destabilized the crypto market, led to significant losses for investors, and prompted increased regulatory measures. In addition to Terraform, the SEC settled a case with the crypto-friendly bank Silvergate Capital. BarnBridge DAO also faced allegations for failing to register crypto assets as securities.

The SEC emphasized its efforts to protect investors. This year, it distributed $345 million to affected market participants, bringing the total to over $2.7 billion since 2021. The agency also processed 45,130 tips, complaints, and referrals in 2024, including 24,000 whistleblower reports.