A new study reveals that the U.S. Securities and Exchange Commission (SEC) has imposed fines totaling over $7.42 billion on the cryptocurrency industry since 2013.
The study has analyzed the SEC’s actions against crypto firms and individuals over the past decade. The numbers also shows that the scrutiny has been increasing over the years.
63% of the SEC’s fine comes from 2024
Interestingly, the SEC has levied $4.68 billion in fines in 2024 alone. This accounts for 63% of the total fine. This amount represents a 3018% increase from the $150.26 million imposed in 2023.
Additionally, firm+individual penalties account for $5.08 billion. This happened across 63 enforcement actions. “The $4.68 billion fine against Terraform Labs has set a new precedent for enforcement, showcasing the SEC’s willingness to impose record-breaking penalties for severe infractions,” the study notes.
Notably, the average fine amount has surged from $3.39 million in 2018 to $426 million in 2024. The SEC’s first crypto fine was imposed in 2013, which accounted for $40.7 million.
The data shows that there have been a total of 30 enforcement actions in 2023. However, in 2024, there have been only 11 enforcement actions so far. But the actions have imposed $4.68 billion in total fines.
Terraform Labs and Do Kwon faced largest penalty
The study identified several high-profile cases that came under the scrutiny of the SEC. The largest one on the list is Terraform Labs and Do Kwon in 2024 with $4.68 billion. Telegram Group and TON Issuer Inc. in 2019 come in second with $1.24 billion.
Next comes GTV Media Group in 2021 with $539.43 million, and Ripple Labs in 2021 with $125 million. The SEC’s fine reached three-digit numbers in 2021. This was when the SEC sued Ripple and classified XRP as an unregistered security.
The average fine has surged from $5 million in 2023 to over $426 million in 2024. “From 2019 to 2024, the SEC’s enforcement actions show a clear trend of rising average fines, reflecting an increasing focus on high-profile cases and larger penalties,” the study said.
The study stated that there has been a steady increase in regulatory scrutiny and penalties from 2013 to 2024. It also highlights that there has been a primary focus on larger firms and major violations.
