SEC collects $8.2B in penalties during fiscal 2024

The U.S. Securities and Exchange Commission (SEC) reported a record-breaking $8.2 billion in financial remedies for fiscal year 2024, largely driven by a $4.47 billion settlement with Terraform Labs and its former CEO, Do Kwon.  

This settlement arose from fraud allegations tied to the 2022 collapse of Terraform's blockchain ecosystem, which caused significant financial losses.  

The SEC’s annual report, released on November 22, revealed that the Terraform case accounted for over half of the total penalties collected.  

Excluding the Terraform settlement, the SEC’s collections would have totaled $3.72 billion, marking its lowest financial remedy amount since 2013, when it collected $3.4 billion.  

The agency secured $2.1 billion in penalties and a record $6.1 billion in disgorgements, which are funds returned to investors harmed by illicit activities.  

Despite the financial milestone, the number of enforcement actions fell by 26% from the previous year, with 583 cases filed in 2024.  

“The Division of Enforcement is a steadfast cop on the beat, following the facts and the law wherever they lead to hold wrongdoers accountable,” stated SEC Chair Gary Gensler describing the agency’s efforts.

Gensler’s tenure, marked by a strong focus on cryptocurrency regulation, will end on January 20, 2025, aligning with President-elect Donald Trump’s inauguration.  

Crypto-related enforcement actions dropped to 11 in 2024, down from 46 the previous year.  

However, penalties from cryptocurrency cases surged by over 3,000%, primarily due to Terraform’s settlement.  

Industry participants anticipate regulatory shifts under Trump’s administration.  

Pantera’s chief legal officer Katrina Paglia suggested that ongoing crypto lawsuits might “quietly go away,” signaling potential changes in enforcement priorities.