The US Securities and Exchange Commission (SEC) achieved $8.2 billion in financial remedies during its 2024 fiscal year, marking a significant milestone despite fewer enforcement actions.

The agency reported that it filed 583 cases this year, reflecting a 26% decrease compared to 2023. However, substantial financial penalties, particularly from high-profile cases like Terraform, drove remedies to record levels.

Terraform Labs Responsible for 56% of SEC’s Enforcement Penalties

The SEC’s enforcement report highlighted that the $4.5 billion penalty from Terraform Labs made up 56% of the year’s total financial remedies. This case, tied to the 2022 Terra/Luna collapse, resulted in the largest monetary judgment ever secured by the SEC after a trial.

Terraform Labs and its CEO, Do Kwon, were found liable for defrauding investors during the Terra/Luna collapse in 2022. The SEC described the incident as one of the most significant securities fraud cases in its history. The collapse, which destabilized the crypto market, resulted in significant losses for investors, prompting heightened regulatory scrutiny.

Beyond Terraform, the SEC settled with crypto-friendly bank Silvergate Capital for misleading disclosures about its compliance programs related to crypto clients, including FTX. BarnBridge DAO also faced charges for failing to register its structured crypto assets as securities.

In addition to enforcement, the SEC highlighted its investor protection efforts. It distributed $345 million to harmed investors this year, bringing its total to over $2.7 billion since 2021.

The agency also p

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Author: Oluwapelumi Adejumo