The US Securities and Exchange Commission (SEC) amassed $4.68 billion in fines from the crypto sector in 2024, marking a 3,018% hike from the previous year's $150.3 million.
A significant contributor to this surge was Terraform Labs, which faced a $4.47 billion penalty after the collapse of its algorithmic stablecoin, TerraUSD.
The SEC asserts these fines improve investor protection, transparency, and compliance within the crypto industry.
In 2024, the SEC initiated fewer actions (11 compared to 30 in 2023), focusing on high-profile cases for greater impact.
Historical data shows an escalation in average fines from $3.39 million in 2018 to $426 million in 2024.
Despite criticisms that such punitive measures might hinder innovation, the SEC continues its rigorous enforcement strategy.
There have been criticisms and legal challenges against the SEC, including a case where a judge accused it of 'bad faith conduct.'
