SEC Crypto Fines List: 2024 Total Surges 3000% Amid Crackdown
For over a decade, the SEC has been actively policing the crypto industry, carrying out 137 enforcement actions and collecting over $7.5 billion in fines.(Photo by Jonathan Raa)
- The SEC imposed fines totaling $4.6 billion on crypto companies in 2024.
- Terraform Labs’ settlement accounted for the majority of the fines.
- Gary Gensler’s hawkish enforcement has put him in the spotlight.
The US Securities and Exchange Commission (SEC) slapped crypto firms with a record-breaking tally of fines in 2024 as the regulator stepped up its enforcement efforts against the industry.
In 2024, the fines imposed on crypto companies soared by 3000% despite the relatively low number of enforcement actions. This was primarily due to high-profile cases of fraud and securities law violations.
SEC Fines Skyrocket By 3000%
In 2024, the SEC fined crypto companies $4.684 billion, a sum that dwarfs the total penalties levied over the past 12 years.
Just 11 enforcement cases drove this surge, which was primarily fueled by high-profile cases of fraud and securities law violations, one of which was Terraform Labs.
Earlier this year, Terraform Labs, the parent company behind the Terra-Luna ecosystem led by Do Kwon, settled with the SEC for $4.5 billion, marking one of the largest payouts in the agency’s history.
A $30 million fine was also levied against Kraken, a popular cryptocurrency exchange, which was forced to wind down its US-based staking business this year. Galois, TradeStation, and other smaller companies also took a hit, paying tens of millions in combined penalties.
Top SEC Fines in 2024
| Date | Firm | Penalty |
|---|---|---|
| June 20 | Terraform labs | $4.5 billion |
| Feb. 9 | Kraken | $30 million |
| Feb. 7 | TradeStation Crypto | $1.5 million |
| March 5 | ShapeShift | 275,000 |
| Sept. 3 | Galois Capital Management LLC | $225,000 |
| Feb. 2 | Rockwell Capital Management, | $223,000 |
| Aug. 12 | NovaTech | $100,000 |
| March 12 | Sanchez | $68,000 |
SEC’s Enforcement Action Over the Years
For over a decade, the SEC has been actively policing the crypto industry, carrying out 137 enforcement actions and collecting over $7.5 billion in fines.
The SEC’s initial foray into its crypto crackdown began in 2013, but the agency’s actions were limited in the early years as the sector was still in its infancy.
However, as the industry grew and the number of service providers increased, so did the SEC’s scrutiny. A notable spike in enforcement actions occurred in 2019, with fines surging by 2000% as the agency cracked down on initial coin offering scams and securities violations.
One of the most high-profile cases from that year was the SEC’s $1.24 billion fine against Telegram and the TON network .
Two years later, the SEC took on Ripple in a securities lawsuit, marking the beginning of a long-running battle that would test the boundaries of crypto regulation.
While the SEC’s enforcement actions, such as those against Terraform Labs and other companies accused of defrauding customers, aim to protect investors, some critics argue that the agency often oversteps its authority.
Several high-profile lawsuits against crypto companies, including Ripple and Binance, have sparked accusations that the SEC is stifling innovation. Although the agency has had some successes, it has also lost several key cases, casting doubt on its jurisdiction over the sector.
Gary Gensler’s Fate Depends on US Elections
As the US presidential election draws near, the fate of SEC Chairman Gary Gensler remains uncertain.
Gensler’s leadership has been marked by controversy, largely due to his regulation-by-enforcement approach, which lawmakers and industry leaders have criticized.
Despite calls for clearer and more transparent regulations, the SEC under Gensler has continued to pursue lawsuits against crypto firms, often meeting with mixed results.
The chairman’s aggressive stance on crypto enforcement has made him a lightning rod this election season. Former President Donald Trump, the Republican nominee, has vowed to remove Gensler on his first day in office if he wins the election.
Meanwhile, speculation surrounds the potential future of Gensler under a Democratic administration.
Rumors suggesting Democratic nominee Kamala Harris would nominate Gensler as Treasury secretary have sparked concern among crypto industry leaders. While these claims are unconfirmed, the potential prospect of Gensler’s appointment has drawn criticism from crypto proponents, who are urging community members to take a stand in the election.
Many experts believe the outcome of the presidential election could have far-reaching implications for the US cryptocurrency industry.
While some advocates call for a bipartisan approach to regulation, many speculate that Gensler’s departure from the SEC could create opportunities for clearer and more well-defined rules.
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