As a seasoned crypto investor with a fair share of ups and downs in this volatile market, I must admit that the SEC’s performance in 2024 has been nothing short of impressive. The $8.2 billion in financial remedies they secured, especially the historic $4.5 billion from Terraform Labs, is a testament to their relentless pursuit of justice.
As a researcher, I must acknowledge that the U.S. Securities and Exchange Commission has faced its fair share of criticism. However, it’s undeniable that they achieved a significant milestone in 2024 by securing orders for approximately $8.2 billion in financial remedies.
This is despite a 26% decrease in total enforcement actions.
Obtaining a guilty verdict against Terraform Labs and its founder, Do Kwon, on fraud charges marked a significant achievement for the agency. Subsequently, the defendants consented to a final ruling that required them to pay over $4.5 billion in penalties – the largest amount ever awarded by the SEC following a trial.
According to the information provided in the press release, it represented over 50% of the overall monetary verdicts.
SEC’s 583 enforcement actions
2024 saw the SEC make notable adjustments in various areas, carrying out a total of 583 enforcement actions. Among these, stand-alone actions accounted for 431 instances, which represented a decrease of 14%. Additionally, there were 93 follow-on administrative proceedings – a decrease of 43%. Lastly, delinquent filing actions numbered 59, demonstrating a decline of 51%.
Even though fewer instances occurred, the financial repercussions still escalated to such an extent, encompassing a total of $6.1 billion in refunds and pre-judgment interest, along with $2.1 billion in civil fines.
In the realm of digital currencies, the Securities and Exchange Commission (SEC) took significant steps, such as accusing Silvergate Capital of providing deceptive information about their Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance disclosures, and also taking action against Barnbridge DAO for offering unregistered securities.
The agency also tackled the HyperFund pyramid scheme involving $1.7 billion and the NovaTech fraud case affecting 200,000 investors. Notable first-time enforcement actions targeted relationship investment scams involving NanoBit and CoinW6 platforms.
In simple terms, the Securities and Exchange Commission’s (SEC) Enforcement Division emerged victorious in all five federal court cases, including one against Terraform Labs regarding cryptocurrency. This streak of wins also included measures to safeguard investors, resulting in 124 individuals being prohibited from holding executive or director positions in public companies.
In simpler terms, Gary Gensler, as SEC Chairman, underscored the division’s commitment as a consistent enforcer, similar to a police officer on duty. Meanwhile, Acting Director Sanjay Wadhwa highlighted improved collaboration and self-regulation among market participants.
The report somewhat justifies Gensler’s role as the top crypto enforcer. The outgoing SEC chair, set to resign on Jan. 20, faced harsh criticism from crypto enthusiasts and retail traders throughout his tenure for his regulatory approach.
As a researcher, I’m delighted to share that the Securities and Exchange Commission (SEC) has been actively working towards investor protection. Last year alone, they disbursed an impressive sum of $345 million to investors who had suffered harm. Furthermore, they processed a remarkable 45,130 tips, complaints, and referrals, a record-breaking number. Among these were over 24,000 whistleblower tips that led to the awarding of $255 million to those who bravely came forward. This is a testament to their commitment to upholding integrity in financial markets.
Over the past year, the agency has significantly managed to return over $2.7 billion to its investors, a figure that has been consistently disbursed since the start of fiscal year 2021.
But most of the actual scams were cyrpto 😬
— sean combs (@William48759211) November 22, 2024
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2024-11-24 17:52