SEC's cryptocurrency enforcement fines in 2024 reached $4.7 billion, a 30-fold increase year-on-year

ChainCatcher news, according to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has shown a significant increase in enforcement actions in the cryptocurrency industry in 2024. According to a report released by Social Capital Markets, the total fines imposed by the SEC on cryptocurrency companies and executives this year have surged to $4.7 billion, a staggering 3018% increase from $150.3 million in 2023.

The report indicates that the SEC has carried out 11 enforcement actions this year, a decrease of 19 from the previous fiscal year, but the total fines have reached a historic high. Notably, the $4.47 billion settlement reached by the SEC in June 2024 with Terraform Labs and its former CEO Do Kwon constitutes the "largest single enforcement action to date."

Data analysis shows that the SEC is shifting towards a strategic adjustment targeting high-impact cases. Since 2020, 46% of the total fines have been below $1 million, while 30% fall within the range of $1 million to $10 million. It is worth noting that the SEC's $1.24 billion enforcement action against Telegram in 2019 (which included a $18.5 million civil penalty and $1.2 billion in asset recovery) led to an almost 2000% year-on-year increase in the average fine amount for that year, exceeding $70 million.