SEC collects about $5 billion through 784 enforcement actions in 2023

For the 2023 financial year, the U.S. Securities and Exchange Commission (SEC) filed 784 enforcement actions and obtained penalties totaling $4.9 billion, of which $930 million was distributed to harmed investors.

In FY 2023, the SEC filed 784 enforcement actions, obtained orders for nearly $5 billion in financial remedies, and distributed nearly $1 billion to harmed investors.

Read more about our Enforcement results for FY 2023: https://t.co/zDgxp1N3qy

— U.S. Securities and Exchange Commission (@SECGov) November 14, 2023

“Enforcement actions spanned the entire securities industry: from billions of dollars of fraud to new threats related to cryptocurrency and cybersecurity,” the regulator’s representatives emphasized.

During the period the SEC received a record 18,000 tips about violations, nearly 50% more than the previous year. In total, more than 40,000 complaints and inquiries were directed to the regulator.

Whistleblowers who alerted the regulator to wrongdoing received more than $600 million.

Among the major penalties:

• a total payout of $400 million by Wells Fargo, HSBC and Scotia Capital for violations of federal record-keeping and customer-protection requirements;
• $178.6 million from Danske Bank for misleading investors about its anti–money-laundering program;
• $75 million from ABB Ltd. in settlement of claims over an alleged bribery scheme.

In 2023 the SEC twice used its powers to freeze illicit assets. First against a Florida resident for creating a $100 million pyramid scheme, and later against the Miami-based investment adviser BKCoin Management in connection with a $100 million fraudulent crypto scheme.

The past 12 months have been “very productive and important” for the Commission’s efforts to crack down on violations in the digital-asset industry. During this period the SEC has brought fraud-related charges against Terraform Labs and its founder Do Kwon, the co-founder of Hex Richard Hart and the founder of FTX Sam Bankman-Fried and other executives of the collapsed exchange.

The agency brought charges alleging the offer of unregistered securities through lending programs or the listing of digital assets on trading platforms Genesis and Gemini, Celsius, Nexo, and also Kraken. The latter agreed to settle the claims, paying $30 million in penalties.

In addition, the SEC for the first time brought charges against non-fungible token issuers Impact Theory and Stoner Cats 2.

“Crypto intermediaries — whether they call themselves centralized or decentralized — often provide a set of services that in securities markets are usually separated: exchange, brokerage, as well as custody and clearing services. Mixing different functions within a platform creates inevitable conflicts of interest and risks for investors,” the agency stressed.

The most egregious alleged cases of non-compliance by crypto intermediaries were Beaxy, Bittrex, Binance and Coinbase.

Finally, the Commission reminded of penalties for unscrupulous influencers. In 2023, the regulator targeted NBA star Paul Pierce and Kim Kardashian for promoting the EthereumMax altcoin without disclosure. They paid $1.35 million and $1.26 million, respectively.

The Commission also charged celebrities Lindsay Lohan, Jake Paul, Michelle Mason, Lil Yachty, Ne-Yo, Akon, Soulja Boy and Austin Mahone for promoting crypto products without disclosure.

In November, the SEC said it faced difficulties hiring crypto experts, as suitable personnel were unwilling to sell their digital assets.