SEC annual enforcement report

SEC Collects Record $8.2 Billion in 583 Enforcement Actions in 2024, Driven by Terraform Labs' $4.5 Billion Fine

Nov 24, 2024, 03:47 PM

The U.S. Securities and Exchange Commission (SEC) reported a record $8.2 billion in financial penalties for fiscal year 2024, marking a significant increase in enforcement actions. The SEC initiated 583 enforcement actions, a 14% rise from the previous year, despite a 26% drop in the total number of cases. A substantial portion of the total penalties, approximately 56%, is attributed to a $4.5 billion judgment against Terraform Labs following the collapse of its Terra/Luna cryptocurrency. Other notable actions included a $125 million penalty against Ripple for its XRP sales and a $50 million fine imposed on Binance's CEO, Changpeng Zhao, who also received a four-month prison sentence. The SEC's aggressive enforcement strategy has been particularly focused on the cryptocurrency sector and private equity funds, reflecting ongoing regulatory scrutiny in these high-risk areas.