SEC’s Penalties in 2024 Reach $8.2 Billion
In fiscal 2024, the SEC saw a record amount of fines and investor compensation, with enforcement actions resulting in $8.2 billion in penalties and reimbursements. The number of cases decreased by 26% compared to the previous year, according to the SEC’s annual report.
Gary Gensler, the outgoing SEC Chair, praised the agency’s Division of Enforcement for being diligent in holding wrongdoers accountable according to the law. Of the total amount, $2.1 billion in fines and $6.1 billion in disgorgement were returned to investors who were harmed.
The largest portion of penalties and remedies were related to a single case involving Terraform Labs and its co-founder, Do Kwon. The company was accused of fraud for its 2022 collapse, which resulted in significant losses for investors. In June, Terraform settled the SEC’s lawsuit for $4.47 billion.
The SEC also took action against financial firms for their use of unofficial messaging services like WhatsApp for official purposes. More than 70 companies agreed to pay over $600 million in penalties last year. This indicates a stricter approach towards companies trying to bypass regulations.
