SEC fines against cryptocurrency companies surge 3018% in one year: Who bears the brunt?

The background to the surge in fines

In 2024, the U.S. Securities and Exchange Commission (SEC) fined cryptocurrency companies a record $4.68 billion. This amount represents an astonishing 3018% increase from US$150 million in 2023. This is the SEC’s most severe regulatory action against the cryptocurrency industry, highlighting strict requirements for transparency and compliance.

Major fine cases

The main payer of the 2024 fine is Terraform Labs and its founder Do Kwon. The large fine in this case reflects the SEC's tough stance on violations related to unregistered securities. Since 2013, the SEC has fined cryptocurrency companies and individuals more than $7.42 billion, with 63% of the amount, or $4.68 billion, coming from 2024.

fine trends

The significant increase in fines began in 2019, when the SEC fined Telegram Group $1.24 billion. Although fines were reduced in 2020, the amount of fines increased in 2021 due to cases such as Ripple Labs. By 2024, the average fine has reached an unprecedented $426 million.

Strengthened supervision

Since 2022, the SEC has significantly strengthened its supervision and, in addition to imposing fines on companies, has also held its executives accountable. This shows that the SEC’s regulation of the cryptocurrency industry is becoming more stringent, and compliance has become particularly important for cryptocurrency companies.

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