SEC’s 2024 Report: $8.2 Billion in Crypto Fraud Penalties

The U.S. Securities and Exchange Commission (SEC) collected a record $8.2 billion in financial penalties in 2024, despite a 26% drop in enforcement cases. The largest contributor was the $4.5 billion fine against Terraform Labs and its CEO, Do Kwon, after the 2022 Terra/Luna collapse, which represented 56% of the total penalties.

Other cases included action against Silvergate Capital for compliance failures and BarnBridge DAO for federal violations. In total, the SEC returned $345 million to victims, bringing restitution since 2021 to over $2.7 billion.

The agency filed 583 cases, with stand-alone actions down 14%, follow-on proceedings down 43%, and issuer-related actions down 51%. It also received over 45,000 tips, awarded $255 million to whistleblowers, and focused on cryptocurrency, AI, and cybersecurity.

Chair Gary Gensler defended the SEC’s aggressive approach, despite criticism that large fines fail to address systemic financial issues. Critics, including a16z’s Miles Jennings, argue for deeper reforms to prevent future misconduct.