SEC’s Regulatory Hammer Falls on Crypto: $7.42 Billion in Fines Since 2013 – Report
Veronika Rinecker is based in Germany, studied international journalism and media management. She specializes in politics and regulation, energy, blockchain, and fintech. Since 2017, she has been...
The United States Securities and Exchange Commission (SEC) has stepped up its oversight of the cryptocurrency industry in recent years, aiming to enhance transparency and enforce regulatory compliance.
The SEC has imposed a total of $7.42 billion in fines against cryptocurrency firms and individuals since 2013, with a staggering $4.68 billion levied in 2024 alone, according to a report from Social Capital Markets released on Sept. 11.
In 2024, the SEC significantly escalated its enforcement against cryptocurrency companies and executives.
The government agency imposed $4.68 billion in fines, a dramatic 3,000% increase compared to 2023. However, this surge was driven by a single case: the $4.67 billion fine levied against Terraform Labs and its founder, Do Kwon, for securities law violations related to the collapse of the TerraUSD (UST) stablecoin.
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.
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
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