A new study by Social Capital Markets reveals that the Securities and Exchange Commission (SEC) has imposed over $7.4 billion in fines on the crypto industry since 2013. The massive $4.47 billion fine against Terraform Labs this year has pushed 2024 to a record-breaking year, with total fines reaching $4.7 billion.
While the overall fine amounts have surged, the number of fines issued has decreased to 11 from 30 in 2023. The report suggests a strategic shift by the SEC towards fewer, but more impactful, cases, underlining the increasing financial risks associated with regulatory violations for crypto firms.
Social Capital Markets’ analysis indicates a total of 148 SEC fines issued since 2013, targeting both firms and individuals. The $7.4 billion estimate encompasses both categories.
The Terraform Labs fine stands as the largest ever, followed by the $1.2 billion fine against Telegram in 2020 for an unregistered digital token sale.
