SEC Secures $8.2 Billion in Investor Financial Remedies in 2024

Crypto 2024-11-24 By

In 2024, the SEC achieved $8.2 billion in financial remedies for investors, despite a decrease in enforcement actions. Notably, the successful prosecution of Terraform Labs contributed significantly to this total.

For all the complaints levied against the crypto-strict U.S. Securities and Exchange Commission (SEC), the agency successfully obtained orders for $8.2 billion in financial remedies for 2024. This is despite a 26% decrease in total enforcement actions. The successful prosecution of Terraform Labs helped the agency achieve this milestone.

Once a jury verdict found Terraform Labs and founder Do Kwon liable for fraud, defendants agreed to a final judgment ordering them to pay more than $4.5 billion in penalties — the highest amount ever obtained by the SEC following a trial. This accounted for more than half of the total monetary judgments, according to the details from the press release.

The SEC’s enforcement efforts in 2024 showed significant shifts across multiple categories, with 583 total enforcement actions. This includes 431 stand-alone actions representing a 14% decrease. Despite the reduced number of cases, the financial impact reached $6.1 billion in disgorgement and prejudgment interest combined with $2.1 billion in civil penalties.

In the cryptocurrency sector, the SEC pursued several major cases, including charges against Silvergate Capital for misleading disclosures and action against Barnbridge DAO for unregistered securities offerings. The SEC’s Division of Enforcement won all five federal district court cases, including its crypto-related trial against Terraform Labs.

SEC Chair Gary Gensler emphasized the Division’s role as a 'steadfast cop on the beat,' while Acting Director Sanjay Wadhwa noted increased market participant cooperation and self-reporting. This success extended to investor protection measures, with 124 individuals barred from serving as officers and directors of public companies.

Key Takeaways

Financial Remedies Achieved: SEC secured $8.2 billion for investors, largely due to Terraform Labs case.
Decrease in Actions: Total enforcement actions decreased by 26% in 2024.
Major Cases Pursued: Significant actions against Silvergate Capital and HyperFund pyramid scheme.
Investor Protection: 124 individuals barred from public company roles, boosting investor safety.