$8.2 Billion In Fines: How The SEC Hit The Crypto Industry In 2024

The fiscal year 2024 was marked by unprecedented law enforcement actions by the Securities and Exchange Commission (SEC) against the crypto industry. With a total of 583 enforcement actions, the SEC managed to obtain orders for financial remedies amounting to $8.2 billion, a historic record for the agency.

Record fines for the SEC in 2024

The SEC’s enforcement actions in 2024 targeted high-risk sectors, including cryptocurrencies and private funds. With historic financial remedies of $8.2 billion representing a 14% increase from the previous year, the SEC emphasizes its commitment to maintaining the integrity of financial markets and protecting investors.

By imposing these record financial penalties, Gary Gensler’s agency sends a clear message about its intention to crack down on fraudulent and non-compliant practices. “The Division of Enforcement is an unwavering guardian, following the facts and the law wherever they lead to hold wrongdoers accountable,” as emphasized by the current SEC chairman, Gary Gensler, who is very pleased with these results.

SEC VS Crypto

In 2024, the SEC intensified its actions against the crypto industry, imposing astronomical fines and obtaining significant convictions. For the record, Ripple was ordered to pay $125 million for the unregistered sale of its XRP token. Subsequently, the lawsuit against Binance was amended, removing Solana from the list of financial securities. Finally, Changpeng Zhao, the CEO of Binance, received four months in prison along with a $50 million fine for violations of money laundering laws.

All these battles waged by the SEC have slowed the development of the crypto ecosystem, much to the dismay of key players. The departure of Gary Gensler in January 2025 is a relief for the industry, which hopes for more favorable regulation and a more conducive environment for innovation.

In sum, the record financial remedies of the SEC in 2024 mainly reflect the decisive actions of the SEC against the crypto industry, hindering its development. The imminent departure of Gary Gensler thus raises hopes for more favorable regulation, allowing the crypto ecosystem to regain a serene environment.