SEC Rakes in $8.2B in Penalties for 2024, Over Half Tied to Terraform Labs
The U.S. Securities and Exchange Commission (SEC) announced that it secured a record $8.2 billion in penalties for fiscal year 2024, primarily driven by its case against Terraform Labs and its founder, Do Kwon, following the collapse of the Terra blockchain ecosystem. The settlement from Terraform Labs accounted for more than half of the total penalties, impacting investors significantly after the $60 billion collapse in May 2022. Despite a 26% decline in the number of enforcement actions to 583, the SEC's financial remedies increased by 65.5% compared to 2023. This rise has been met with criticism from industry members who view SEC Chair Gary Gensler's tenure as overly punitive towards the crypto sector. With the anticipated re-election of Donald Trump, Gensler announced his intention to step down, leading to hopes for a less adversarial stance towards cryptocurrency under future leadership. The SEC also targeted other firms such as Silvergate Bank and Barnbridge DAO during the year, contributing to the overall figures.
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