SEC Crypto Fines: 2024 Hits Record $4.6B, Contributing to Historic $8.2B in Remedies

• 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 U.S. 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 four digits despite the relatively low number of enforcement actions. This was primarily due to high-profile cases of fraud and securities law violations.

SEC Fines Reach $8.2 Billion

In 2024, the SEC took enforcement actions against 583 entities , resulting in fines totaling $8.2 billion, a sum that dwarfs the penalties levied over the past 12 years.

However, a huge sum of the fines came from enforcement actions against crypto companies.

In fact, eleven 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 that was forced to wind down its US-based staking business this year. Galois, TradeStation, and other smaller companies also suffered, paying tens of millions in combined penalties.

Top SEC Fines in 2024

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 Resigns

Gary Gensler, the chairman of the SEC and the driving force behind the regulation-by-enforcement approach that hit the crypto industry over the past four years, has announced he will be stepping down on Jan. 20.

In his four-year tenure, Gensler drew the ire of many in the crypto community for what they saw as an unfair assault on the crypto industry. 

Gensler’s departure has been welcomed by much of the crypto industry, where his leadership was often viewed as a barrier to innovation.

Brian Brooks, Brad Bondi, Dan Gallagher, Hester Peirce, Mark Uyeda, Paul Atkins, and Chris Brummer are potential candidates to succeed Gensler.

With additional reporting from Giuseppe Fabio Ciccomascolo.