The U.S. Securities and Exchange Commission (SEC) has levied a staggering $7.4 billion in fines on the crypto industry since 2013, according to a recent report by the digital assets analytics company Social Capital Markets.
The research highlights an incredible rise in enforcement, with 63% of the total fines, which equals $4.68 billion, imposed in 2024 alone. That’s a mind-blowing 3018% increase compared to the $150.26 million in penalties issued in 2023.
Terraform Labs and its co-founder Do Kwon were set on the SEC’s goal in 2024, so they have imposed a record-breaking penalty of $4.68 billion. This single fine crushed all previous enforcement actions, setting a new precedent for the agency’s approach to crypto regulation.
Notable past crypto penalties
The report lays bare the undeniably increasing average fines. In 2018, the average penalty amounted to $3.39 million. By 2024, that number leaped to the staggering figure of $426 million, a blinding 12,466% increase.
Other related examples are the $1.24 billion fine against Telegram for selling the unregistered TON token. Additionally, GTV Media Group and the surrogates’ $539 million breakup with the law in 2021.
The SEC’s enforcement strategy has recently developed to focus on both firms and individuals. “Firm + Individual” penalties stood at $5.08 billion across 63 actions, showing that the agency’s intent was to hold both corporate structures and decision-makers accountable.
Nevertheless, as the SEC exercises its power to steer the industry, the dangers of firms violating regulations become even higher. The message is clear: adapt to the evolving regulatory landscape or face potentially crippling consequences.
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