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SEC Smashes Records with $8.2 Billion in Fines, Thanks to Terraform Labs

Key Takeaways

  • SEC secured a record $8.2 billion through fines in 2024, with $4.47 billion from Terraform Labs’ fraud case tied to its 2022 blockchain collapse;
  • Without Terraform’s settlement, the SEC’s financial recovery would’ve hit its lowest point since 2013 at $3.72 billion;
  • $6.1 billion in disgorgement marked a record, reinforcing the SEC's focus on returning unlawful profits to affected investors.
SEC Smashes Records with $8.2 Billion in Fines, Thanks to Terraform Labs

The US Securities and Exchange Commission (SEC) reached a milestone, securing $8.2 billion in financial penalties during the fiscal year 2024.

This surge was primarily attributed to a settlement with Terraform Labs and its former CEO, Do Kwon.

Terraform Labs was at the center of the SEC’s landmark enforcement action, resulting in a $4.47 billion settlement. This case began from allegations of fraud related to the 2022 collapse of Terraform’s blockchain ecosystem, which caused massive financial losses.

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Without this settlement, the SEC’s total for the year would have fallen to $3.72 billion, marking its lowest financial recovery since 2013. That year, the agency brought in $3.4 billion through fines and penalties.

Breaking down the figures, the SEC obtained $2.1 billion in penalties and a record-setting $6.1 billion in disgorgement, which involves returning unlawful gains to affected investors. The SEC emphasized its commitment to pursuing wrongdoing, as highlighted in a statement from outgoing Chair Gary Gensler.

The US cryptocurrency industry has been closely monitoring the SEC’s actions, with many anticipating a shift in regulatory priorities.

The SEC’s aggressive stance on cryptocurrency has sparked intense debate and scrutiny. On November 15, 2024, a coalition of 18 US states has taken action against Gary Gensler’s crypto enforcement strategy. What challenges are they bringing to the table? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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