{"id":16832,"date":"2024-09-10T12:21:37","date_gmt":"2024-09-10T09:21:37","guid":{"rendered":"https:\/\/forklog.com\/en\/secs-crypto-startup-penalties-reach-record-4-7-billion\/"},"modified":"2024-09-10T12:21:37","modified_gmt":"2024-09-10T09:21:37","slug":"secs-crypto-startup-penalties-reach-record-4-7-billion","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/secs-crypto-startup-penalties-reach-record-4-7-billion\/","title":{"rendered":"SEC&#8217;s Crypto Startup Penalties Reach Record $4.7 Billion"},"content":{"rendered":"<p>The amount collected by the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> from enforcement actions related to digital assets in the 2024 fiscal year surged by 3018%, reaching a record $4.7 billion. These calculations were provided by <a href=\"https:\/\/socialcapitalmarkets.net\/crypto-trading\/crypto-sec-fines-penalties\/\">Social Capital Markets<\/a>.<\/p>\n<p>This was primarily driven by the <a href=\"https:\/\/forklog.com\/en\/news\/terraform-labs-fined-4-47-billion-by-sec\">settlement with Terraform Labs<\/a> and its former CEO Do Kwon for $4.47 billion.<\/p>\n<p>In the 2024 fiscal year, the Commission initiated 11 cases compared to 30 the previous year.<\/p>\n<p>The total amount collected by the SEC during this period exceeded the cumulative figure for 2013-2023.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/1-1199.webp\" alt=\"1-1199\" class=\"wp-image-240762\"\/><figcaption class=\"wp-element-caption\">Data: Social Capital Markets.<\/figcaption><\/figure>\n<p>The metric includes disgorgement, restitution, civil penalties, settlements, and prejudgment interest, calculated from the moment the agency initiates enforcement proceedings.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe trend indicates a strategic shift by the SEC towards fewer, larger fines, focusing on high-impact enforcement actions that set precedents for the entire industry,\u201d<\/em> the report states.<\/p>\n<\/blockquote>\n<p>The average size of penalties soared to $426 million, compared to $5-70.7 million in previous years.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/2-889.webp\" alt=\"2-889\" class=\"wp-image-240763\"\/><figcaption class=\"wp-element-caption\">Data: Social Capital Markets.<\/figcaption><\/figure>\n<p>On September 9, the <span data-descr=\"Federal Bureau of Investigation\" class=\"old_tooltip\">FBI<\/span> reported a 45% increase in losses related to crypto fraud in 2023. These figures are included in the <a href=\"https:\/\/www.ic3.gov\/Media\/PDF\/AnnualReport\/2023_IC3CryptocurrencyReport.pdf\">annual report<\/a>.<\/p>\n<p>According to the document, the agency&#8217;s Internet Crime Complaint Center received over 69,000 such reports, with losses amounting to $5.6 billion. Overall, digital assets accounted for 10% of complaints and about half of all losses.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/3-503.webp\" alt=\"3-503\" class=\"wp-image-240764\"\/><figcaption class=\"wp-element-caption\">Data: FBI.<\/figcaption><\/figure>\n<p>The majority of complaints came from individuals over 60, followed by consumers aged 30-40. According to the report, most concerned cases of investment fraud.<\/p>\n<p>As reported by Chainalysis, cryptocurrency criminals have shifted focus from complex Ponzi schemes to more targeted types like &#8220;pig butchering&#8221; scams.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The amount collected by the SEC from enforcement actions related to digital assets in the 2024 fiscal year surged by 3018%, reaching a record $4.7 billion. These calculations were provided by Social Capital Markets. This was primarily driven by the settlement with Terraform Labs and its former CEO Do Kwon for $4.47 billion. In the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16831,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[44,36,1252,1246,128,26],"class_list":["post-16832","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cybercrime","tag-regulation","tag-reports","tag-scammers","tag-sec","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/16832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=16832"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/16832\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/16831"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=16832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=16832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=16832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}