In recent years, the U.S. Securities and Exchange Commission (SEC) has increased its regulatory actions against the cryptocurrency industry to ensure transparency, protect investors, and enforce legal compliance.

These fines highlight the importance of adhering to regulations as the digital asset space grows.

This report by Social Capital Markets analyzes SEC fines imposed on major crypto companies from 2013 to 2024, focusing on critical cases, fine amounts, and violations.

It offers insights into the evolving regulatory environment and its impact on the cryptocurrency industry.

Key Insights & Stats

 

  • Total fines issued: Since 2013, the SEC has levied over $7.42 billion in fines against crypto firms and individuals, of which 63% of the fine amount, i.e., $4.68 billion, came in 2024 alone
  • From $150.26 million (2023) to $4.68 billion(2024), the amount of the fine increased by a staggering rate of 3018%
  • “Firm + Individual” penalties account for $5.08 billion across 63 enforcement actions.
  • The massive $1.24 billion fine against Telegram Group Inc. and TON Issuer Inc. in 2019 drove the average fine up by nearly 2000%, marking a significant change in the SEC’s approach.
  • The $4.68 billion fine against Terraform Labs has set a new precedent for enforcement, showcasing the SEC’s willingness to impose record-breaking penalties for severe infractions.
  • Notably, the 11 enforcement actions in 2024 resulted in an average fine of $426 million, far surpassing the average fine in prior years. The rise in average fines from $3.39 million (2018) to $426 million (2024) illustrates the growing financial risk for crypto companies that fail to comply with regulatory standards.
  • In 2013, the SEC imposed fines totaling $40.7 million, marking one of the early regulatory actions in crypto.

Year-by-Year Breakdown of SEC Fines (2013-2024)

 

Year Total Fines (in USD) Number of Enforcement Actions
2013 $40,704,667 1
2014 $119,231 2
2015 $9,020,000 2
2016 $53,756 1
2017 $6,911,613 4
2018 $47,592,432 14
2019 $1,342,850,848 19
2020 $119,169,948 23
2021 $703,988,616 20
2022 $308,907,478 21
2023 $150,267,858 30
2024 $4,686,644,126 11
Total $7,416,230,573 148
  • 2014-2016: These years saw relatively lower fines, ranging from $53,755 in 2016 to $9.02 million in 2015. This period reflects the initial stages of SEC involvement in crypto regulation, primarily enforcing smaller violations.
  • 2017: The fines increased to $6.91 million as more crypto firms began to face regulatory actions, especially during the ICO boom.
  • 2020: By 2020, the SEC had fined $65 million in the notable case of Robinhood Financial LLC, signaling the start of more aggressive enforcement in more prominent cases.
  • 2021: Fines reached $125 million, with Ripple Labs being the standout case, as the SEC classified XRP as an unregistered security. This year highlighted a significant focus on high-profile companies.
  • 2022: Total fines amounted to $102.64 million, led by cases such as the Barksdales’ fraudulent ICO, reflecting a shift towards prosecuting individual actors.
  • 2023: The fine amounts significantly increased as the SEC charged Coinbase and other significant players, showcasing ongoing efforts to regulate large crypto exchanges.
  • 2024: The year saw a record-breaking $4.68 billion fine imposed on Terraform Labs and Do Kwon. This year marked the SEC’s most aggressive stance, clearly focusing on high-profile cases and unregistered securities violations.

The SEC fines have grown dramatically, particularly in 2024, with the largest single fine to date. The increased fines demonstrate the SEC’s intensifying regulatory scrutiny.

In 2021 and 2024, high-profile firms like Ripple, Telegram, and Terraform Labs were charged for unregistered token sales and securities violations.

From 2022 onward, fines have charged firms and individuals showing the SEC’s intent to hold key heads of the companies accountable.

The Largest Fine in History: 2024’s $4.68 Billion Bombshell

 

2024 has already become a record-breaking year, with $4.68 billion in fines, primarily driven by the SEC’s massive penalty against Terraform Labs PTE, Ltd. and its co-founder, Do Kwon.

This fine marks the largest enforcement action to date, dwarfing previous fines and setting a new precedent in regulatory oversight of the crypto space.

Year Total Fines Number of Fines Average Fine
2018 $47.59M 14 $3.39M
2019 $1.34B 19 $70.68M
2020 $119.17M 23 $5.18M
2021 $703.99M 20 $35.20M
2022 $308.91M 21 $14.71M
2023 $150.27M 30 $5M
2024 $4.68B 11 $426M

From 2019 to 2024, the SEC’s enforcement actions show a clear trend of rising average fines, reflecting an increasing focus on high-profile cases and larger penalties against major crypto firms.

2019 saw a massive 1979.05% increase in the average fine compared to 2018, driven by significant enforcement actions.

The average fine in 2018 was $3.39M, which increased to an average of $426M in 2024, suggesting a 12,466.37% growth

1. Explosive Growth in 2019:

In 2019, the average fine jumped dramatically to $70.68 million, driven by major cases like the $1.24 billion fine against Telegram Group Inc. for its unregistered digital token sale through its TON blockchain project. This was a 1979.05% increase compared to 2018, indicating a significant shift in the SEC’s approach to tackling regulatory violations in the crypto space.

2. Dip in 2020:

Despite 23 enforcement actions in 2020, the average fine dropped to $5.18 million, a 92.67% decrease compared to 2019. This drop suggests that while the SEC continued to enforce regulations, the fines issued were generally smaller, likely enforcing mid-sized firms or less severe infractions.

3. Rebound in 2021:

In 2021, the average fine rebounded to $35.2 million, a 579.35% increase from 2020. This rise was driven by high-profile cases like the $125 million fine against Ripple Labs. This marks a year where the SEC began to reassert its focus on major players in the crypto industry.

4. Moderation in 2022-2023:

The average fine in 2022 settled at $14.71 million, a 58.21% decrease from the previous year, as the SEC balanced its enforcement actions across a larger number of smaller cases. However 2023 saw a breach of $150 million in fines due to Kraken- a leading US crypto futures trading platform being fined $30 million for operating an unregistered securities exchange, broker, dealer, and clearing agency.

5. Unprecedented Surge in 2024:

The most dramatic rise occurred in 2024, with the average fine reaching an astounding $426 million—the highest ever recorded.

This increase is primarily due to the $4.68 billion fine against Terraform Labs PTE, Ltd. and Do Kwon, marking the most significant enforcement action in crypto history.

With 11 enforcement actions issued in 2024, this year signifies a turning point in the SEC’s enforcement strategy.

Volatility in Average Fines: The period from 2019 to 2024 shows sharp fluctuations in average fines, reflecting the SEC’s alternating focus between high-profile, high-penalty cases and more frequent, smaller infractions.

This trend indicates a strategic shift by the SEC toward fewer but larger fines, with a focus on making high-impact enforcement actions that set precedents for the entire industry.

Top Crypto Companies Fined in 2024

 

Crypto Companies Year Fined Agency Fined Amount Fined Entity/Person
Terraform Labs PTE, Ltd. and Do Kwon 2024 SEC $4,678,148,502 Firm + Individual
Telegram Group Inc. and TON Issuer Inc. 2019 SEC $1,242,500,000 Firm
GTV Media Group Inc
Saraca Media Group Inc
Guo Media Inc		 2021 SEC $539,433,428 Firm
Ripple Labs Inc 2021 SEC $125,000,000 Firm

Here are the top SEC fines imposed on the crypto industry:

#1. Terraform Labs PTE, Ltd. and Do Kwon (2024):

The SEC imposed a staggering $4.68 billion fine on Terraform Labs and its founder Do Kwon for misleading investors and offering unregistered securities. The case marked a significant regulatory move to hold firms accountable for violating securities laws, particularly in light of the collapse of TerraUSD (UST) and its ecosystem, which caused widespread financial losses.

#2. Telegram Group Inc. and TON Issuer Inc. (2019):

Telegram was fined $1.24 billion by the SEC after it was found to have unlawfully sold unregistered digital tokens in its TON (Telegram Open Network) initial coin offering (ICO). The SEC intervened, halting the project and emphasizing the importance of registration and compliance when raising funds through token sales.

#3. GTV Media Group Inc., Saraca Media Group Inc., and Voice of Guo Media Inc. (2021):

These entities were collectively fined $539.43 million for conducting an illegal unregistered offering of GTV common stock and digital asset security. The SEC’s action aimed to address the lack of transparency and regulatory compliance in their offerings, protecting investors from fraud and misinformation.

#4. Ripple Labs Inc. (2021):

Ripple Labs faced a $125 million fine for selling XRP as an unregistered security. The case, one of the most high-profile in the crypto space, involved debates over whether XRP should be classified as a security under U.S. law. The SEC’s enforcement action highlighted the broader implications for many other digital assets.

The SEC charged this case to protect investors from deceptive schemes and highlight the need for stricter oversight on ICOs and token sales.

Fined Entity/Person Fine Amount Number of Fines
Firm + Individual $5.08B 63
Firm $2.20B 51
Individual $132.62M 34

These enforcements charged firms and individuals, demonstrating the SEC’s approach to holding organizations and their executives accountable.

Fines categorized under “Firm + Individual” penalties account for $5.08 billion across 63 enforcement actions, emphasizing the agency’s intent to penalize both corporate structures and the decision-makers involved.

Fine Distribution by Amount (2020-2024)

 

  1. High Fines Dominating: Most fines are in the >$1 billion range, mainly due to the record $4.68 billion penalty against Terraform Labs in 2024. This reflects the SEC’s focus on major violations.
  2. Mid-Range Fines ($1M – $10M): A substantial number of fines are in the $1M – $10M category, indicating frequent penalties for smaller firms facing compliance issues.
  3. Smaller Fines: The < $1M category shows the SEC is scrutinizing even more minor projects, emphasizing broad regulatory oversight.

The chart shows SEC fines imposed on crypto firms and individuals from 2020 to 2024, categorized by amount. Key observations:

Conclusion


The analysis of SEC fines on cryptocurrency companies from 2013 to 2024 shows a significant increase in regulatory scrutiny and penalties. The trend reflects a growing focus on larger firms and serious violations, with fines peaking in recent years.

Despite fluctuations, the overall increase in fine amounts indicates a strategic shift toward fewer, high-impact cases.

This evolution emphasizes the need for crypto firms to prioritize regulatory compliance as the financial risks associated with violations have escalated.

This emphasizes the need for crypto firms to adhere to regulations as the financial risks grow. As the SEC shapes the industry’s future, compliance will be key to ensuring long-term stability.

Methodology

To compile the data for this report, the Social Capital Markets team used multiple reputable sources (source 1, source 2, source 3), focusing on SEC enforcement actions and fines against cryptocurrency firms and individuals.

The fines include forfeiture amount, disgorgement, civil penalties, settlement amount, and prejudgment interest. We extracted fine amounts, the number of actions, and key cases from 2013 to 2024. Each case’s fines and violations were analyzed to understand regulatory trends till August 2024’s available data sets.

Data was segmented by year and fine amount to track SEC enforcement patterns.

This approach allowed us to identify major cases and calculate average fines, ensuring an accurate view of SEC actions in the crypto industry.