The US Securities and Exchange Commission (SEC) collected a record $8.2 billion in enforcement efforts for 2024, with 56% of this total coming from the $4.5 billion settlement with Terraform Labs and Do Kwon. The case, involving one of the largest securities frauds in US history, also contributed to the 65.57% increase in fines and penalties compared to 2023.
Other significant cases included HyperFund and NovaTech Ltd., which accounted for over $2.2 billion in investor losses. In total, crypto-related enforcement actions accounted for a smaller percentage of cases but led to disproportionately large financial recoveries. The SEC also targeted non-compliance with recordkeeping and marketing rules, imposing over $600 million in penalties on firms for recordkeeping violations.
Gary Gensler, Chair of the SEC, attributed the success to its Division of Enforcement’s commitment to holding wrongdoers accountable. Ripple’s ongoing legal saga and XRP’s recent price rally have been closely monitored, with analysts speculating that Gensler’s departure could lead to a shift in the SEC’s stance on crypto cases.
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