SEC Collects $8.2B in Remedies in FY24, 56% from Terraform Labs
The Securities and Exchange Commission (SEC) had a record-breaking year in fiscal year 2024, collecting a total of $8.2 billion in recoveries and fines. This impressive sum was largely driven by the SEC’s enforcement actions against algorithmic stablecoin issuer Terraform Labs and its CEO, Do Kwon. In fact, a whopping 56 percent of the total remedies collected by the SEC came from Terraform Labs and Kwon alone. The company and its CEO settled with the regulator earlier this year, agreeing to pay $4.5 billion in recovery and civil penalties to resolve securities fraud charges.
This enforcement action against Terraform Labs was just one of several high-profile cases brought by the SEC against crypto companies. For example, another significant lawsuit against Ripple Labs concluded with a $125 million order against the blockchain company, which has since appealed the decision. Additionally, the SEC sought $1.95 billion from a San Francisco-based crypto payments firm.
Out of the total $8.2 billion collected by the SEC, $6.1 billion came from recovery and interest, marking a record high for the agency. In addition, the SEC collected $2.1 billion in civil penalties, which is the second-highest amount on record.
Despite the impressive financial figures, the SEC filed 583 enforcement actions in fiscal year 2024, representing a 26 percent decline from the previous year. However, the agency received a record-breaking 45,130 tips, complaints, and referrals, demonstrating a high level of engagement with the public.
Looking ahead, there may be changes in store for the SEC under the incoming administration. Gary Gensler, the current SEC Chair, has announced that he will step down on January 20th, the day of President Trump’s inauguration. While a replacement for Gensler has not yet been confirmed, there are several crypto-friendly candidates being considered for the top regulatory position.
The next SEC Chair will be tasked with overseeing critical crypto litigations, including ongoing cases with Coinbase and Binance. Interestingly, Coinbase has even sued the regulator for clarification on crypto rules, adding another layer of complexity to this ever-evolving landscape.
