The SEC Spread $2.4 Billion in Crypto Penalties

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The SEC Spread $2.4 Billion in Crypto Penalties

The SEC has issued fines against participants in the digital assets market since 2013; Which amounts to approximately $2.35 billion. SEC Cryptocurrency Enforcement: 2021 Update According to the report, the SEC issued 97 enforcement actions worth $2.35 billion; Starting from 2013 to the end of 2021.

There were 58 complaints out of 97, And the remaining 39 administrative proceedings. Out of a total of $2.35 billion raised in litigation, $1.71 billion was in court; $640 million was in administrative proceedings. Most of the defendants were “only firm respondents; Which raised $1.86 billion out of a total of $2.35 billion. Meanwhile, individual respondents were charged the remaining $490 million.

Although the SEC imposed the first fine on a crypto participant in 2013; The report says that the trial initiated by the SEC in the crypto space did not start until 2017. Until 2013-2017, there were only six crypto cases undertaken by the entire SEC.

The Agency started 20 out of 97 cases in 2021. Six administrative proceedings and 14 appeals to U.S. federal courts. Of the 20 total enforcement actions, 70% were related to the ICO. According to the report, out of 20 enforcement actions in 2021, 65% claimed fraud, 80% were associated with the breakdown of unregistered securities offerings, And 55% approved of both.

SEC Crypto Penalties

The report’s author said in a statement that the SEC’s recent crackdown on cryptocurrencies might be linked to the appointment of Gary Gensler, the SEC chairman, in 2021. It also noted that SEC enforcement was significantly higher from late May to mid-September. The SEC has taken the first action against an unregistered digital asset exchange, a crypto lending platform, and a decentralized finance lender. Also imposed one of the most significant fines; Which became apparent in ICO-related enforcement action after the Telegram.

The vice president of Cornerstone Research suggests that these austerity measures will continue this year. Considering the SEC’s constant focus on the crypto industry; In 2022, we may see further scrutiny of sure market participants, such as DeFi platforms.

At the end of December 2021, Gary added a new employee; Which assisted the Agency in matters of cryptocurrency supervision. This has since become known; Which led to the resignation of one of the members of the SEC Council.

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