The post Record Fines and Crypto Industry Crackdown appeared on BitcoinEthereumNews.com.

The SEC remained public enemy No.1 for the US crypto industry, ramping up its enforcement efforts in 2024. The regulatory agency issued record-breaking penalties to crypto companies throughout the year.  With a potential change in the SEC’s regulatory stance anticipated under Donald Trump’s upcoming administration, here’s a look back at how the agency scrutinized crypto companies this year.  Record-Breaking Fines Highlight SEC’s Stance on Crypto The year marked a turning point for the regulator’s approach, with fewer enforcement actions but significantly higher fines. In 2024, the SEC imposed $8.2 billion in penalties on 583 crypto companies. This figure is larger than the cumulative fines levied over the past 12 years. Most surprisingly, this dramatic increase came from just 11 cases, each involving substantial financial misconduct. One of the most significant cases revolved around Terraform Labs. Its founder, Do Kwon, faced accusations of orchestrating one of the largest securities frauds in US history. Following a jury trial in Manhattan, Terraform Labs settled with the SEC for $4.5 billion.  “Terraform Labs PTE, Ltd. & Do Kwon agreed to pay more than $4.5 billion following a unanimous jury verdict holding them liable for orchestrating a years-long fraud involving crypto asset securities that led to massive investor losses when the scheme unraveled,” The SEC posted back in June.  Terraform, which filed for bankruptcy in January, will prioritize compensating crypto investors during its liquidation process before fulfilling the SEC’s settlement.  The firm estimates that eligible stakeholders may recover between $184.5 million and $442.2 million, leaving much of the settlement amount unpaid. Fraud Cases Dominate SEC’s Enforcement Actions The SEC pursued several cases of fraud, with Touzi Capital and its founder, Eng Taing, among the most prominent. Touzi Capital raised over $100 million from investors, promising secure, high-yield crypto mining projects and debt rehabilitation ventures.  However,…

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Filed under: News - @ December 26, 2024 11:21 am