TechFlow reported on September 10, according to Cointelegraph, that the U.S. Securities and Exchange Commission (SEC) has significantly intensified its enforcement actions against the cryptocurrency industry during fiscal year 2024. A report from Social Capital Markets revealed that the total fines imposed by the SEC on crypto firms and executives this fiscal year surged to $4.7 billion, a 3018% increase compared to $150.3 million in fiscal year 2023.
The report showed that although the SEC conducted only 11 enforcement actions this fiscal year—19 fewer than the previous year—the total penalty amount reached a record high. The bulk of this sum came from a $4.47 billion settlement reached in June 2024 with Terraform Labs and its former CEO, Do Kwon, marking the "largest single enforcement action to date."
Data analysis indicates a strategic shift by the SEC toward focusing on high-impact cases. Since 2020, 46% of penalties were below $1 million, and 30% fell between $1 million and $10 million. Notably, the SEC’s 2019 enforcement action against Telegram—which included an $18.5 million civil penalty and $1.2 billion in asset disgorgement—caused the average penalty for that fiscal year to skyrocket nearly 2000% year-on-year, exceeding $70 million.
