The U.S. Securities and Exchange Commission in a crackdown on the cryptocurrency industry levied more than $7.42 billion in fines against crypto firms and individuals from 2013 to 2024, according to a study.
The federal regulatory agency issued $4.68 billion in fines in 2024 alone, marking a stunning 3,018% change from last year when about $150 million in fines were levied, according to an analysis by Social Capital Markets.
"In recent years, the U.S. Securities and Exchange Commission (SEC) has increased its regulatory actions against the cryptocurrency industry to ensure transparency, protect investors, and enforce legal compliance," the company said in the study.
Social Capital Markets said the report on the top crypto companies spanning those 11 years focused on "critical cases, fine amounts, and violations."
The analysis pointed out that the $4.68 billion fine against Terraform Labs in June 2024 "set a new precedent for enforcement" and showed the SEC's inclination to issue "record-breaking fines for severe infractions."
The now-bankrupt company swindled billions from cryptocurrency investors, "one of the largest securities frauds in U.S. history," court documents said.
The SEC carried out11 enforcement actions in 2024 that resulted in an average fine of $426 million, far outpacing the average in previous years, Social Capital Markets said.
The increase in average fines from $3.39 million in 2018 to more than $400 million this year "illustrates the growing financial risk for crypto companies that fail to comply with regulatory standards," the report said.
