The post SEC case against Terraform Labs lead account for over 50% of its record year financial remedies appeared on BitcoinEthereumNews.com.

The Securities Exchange Commission (SEC) obtained orders for $8.2 billion in remedies for the 2024 fiscal year, a record high for the regulatory agency. This is a 67% increase from the $4.9 billion in financial penalties that it collected in 2023. According to the official press release, the regulator filed 583 enforcement actions during the year, a 23% decline from the previous year. Most enforcement actions (431) were stand-alone, while 93 were follow-on administrative proceedings based on civil injunctions, orders, and criminal prosecutions. 59 enforcement actions targeted issuers who did not make their compulsory filings on time. The massive increase in financial remedies, despite the decline in enforcement action, owes much to SEC enforcement action against crypto entities, particularly Terraform Labs (TFL) and its co-founder Do Kwon. In this case, TFL settled charges for $4.5 billion, while SEC also got an order against Kwon to pay $200 million in penalties. Speaking on this, SEC Chair Gary Gensler noted that the SEC’s proactiveness enabled it to pursue wrongdoers and protect investors. Gensler said: “The Division of Enforcement is a steadfast cop on the beat, following the facts and the law wherever they lead to hold wrongdoers accountable. As demonstrated by this year’s results, the Division helps promote the integrity of our capital markets to benefit investors and issuers alike.” Beyond the financial remedies, 2024 was also a record year in terms of complaints and reports, with the SEC receiving 45,130 tips, complaints, and referrals, the highest number ever. The regulator also obtained orders banning 124 individuals from serving as officers or directors of public companies, the second-highest number in a decade, and distributed $345 million to harmed investors. 50% of SEC major fraud cases were crypto-related Meanwhile, two of the four major fraud cases that the SEC charged in 2024 involved…

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Filed under: News - @ November 23, 2024 4:21 pm