A new report reveals that the Securities and Exchange Commission (SEC), under Gary Gensler’s leadership, significantly reduced its crypto enforcement actions in 2024.
Fewer Cases, Bigger Fines
The number of crypto-related enforcement actions dropped by 30% in 2024, down to 33 cases from the previous year’s high. While fewer cases were filed, the total penalties imposed reached a record-breaking $4.98 billion. This massive increase is largely due to a single, multi-billion dollar settlement.
The Breakdown
The 33 actions involved 90 defendants and included 25 lawsuits and 8 administrative proceedings. The most common accusations were fraud and unregistered securities offerings, with many cases alleging both. Interestingly, half of all enforcement actions happened in the final three months of the year.
Record-Setting Settlement
The massive $4.55 billion settlement in the SEC v. Terraform Labs case accounted for the majority of the record-high penalties. This settlement alone included $4.05 billion in disgorgement and prejudgment interest, making it the largest ever in a crypto-related enforcement action.
New Leadership at the SEC
It’s worth noting that Mark T. Uyeda recently took over as Acting Chairman of the SEC. The impact of this leadership change on future crypto enforcement remains to be seen.
