SEC's Record Penalties in 2024 Highlight Impact of Major Fraud Cases
by aria-crypto.com
November 23, 2024 at 14:42
SEC's Record Penalties in 2024 Highlight Impact of Major Fraud Cases
The US Securities and Exchange Commission (SEC) collected a record $8.2 billion in financial remedies in fiscal year 2024, despite reducing the number of enforcement actions by 26% from the previous year. A major contributor to this amount was a $4.5 billion penalty from Terraform Labs, accounting for 56% of the total collected, stemming from the notorious Terra/Luna collapse. This case was noted as one of the most significant securities fraud incidents in SEC history, causing widespread instability in the cryptocurrency market. Additional enforcement included settlements with entities like Silvergate Capital, which misled about its compliance programs, and BarnBridge DAO, charged for not registering crypto assets as securities. The SEC also returned $345 million to investors affected by various violations, increasing its restitution efforts to over $2.7 billion since 2021. Alongside financial penalties, the SEC processed over 45,000 tips, complaints, and referrals, with whistleblower awards totaling $255 million. Outgoing SEC Chair Gary Gensler emphasized the agency's commitment to rigorous enforcement and investor protection. Critics, however, like Miles Jennings from a16z crypto, argue that large penalties alone do not adequately address broader financial market issues.
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