US SEC Regulation News: A Historic $4.68 Billion in Fines from the Crypto Sector

Regulatory Highlights in 2024

The US Securities and Exchange Commission (SEC) has collected a staggering $4.68 billion in fines from the crypto sector in 2024. This record amount marks a 3,018% increase compared to fines collected in 2023.

Transparency and Compliance Efforts

SEC claims that through these fines, it is ensuring transparency, protecting investors, and enforcing compliance across the crypto industry.

Major Contributors to Fines

• Terraform Labs Contributed Majorly: The bulk of these fines stem from a landmark case against Terraform Labs and its co-founder, Do Kwon.
• The $4.47 billion penalty was levied following the collapse of Terraform’s algorithmic stablecoin, TerraUSD, resulting in substantial losses for investors.

Settlement and Enforcement Actions

In June 2024, Terraform Labs consented to a settlement with the SEC, addressing allegations of misleading investors about the stability and security of its digital assets.

Despite undertaking fewer enforcement actions—11 in 2024 compared to 30 the previous year—the SEC has secured fines totaling over 30 times the amount collected in 2023. This dramatic increase from $150.3 million last year to billions this year illustrates a more focused strategy on high-profile cases.

Additional Targets of the SEC

• Over the years, the SEC has also targeted firms such as Ripple and Telegram for unregistered token sales and securities violations.