- Records show the money came mostly from the settlement with Terraform Labs
- the commission said it filed 583 total enforcement actions and obtained orders for $8.2 billion in financial remedies for the fiscal year that ended on September 30
- The commission said $6.1 billion came from disgorgement and prejudgment interest, making it the highest amount on record
The United States Securities and Exchange Commission (SEC) said it reached a new record with money made from fines and penalties in the 2024 fiscal year. Records show the money it made came mostly from the settlement with Terraform Labs.
According to a press statement posted on its website, the commission said it filed 583 total enforcement actions and obtained orders for $8.2 billion in financial remedies for the fiscal year that ended on September 30, making it the highest amount in SEC history.
The commission explained that the 583 enforcement actions represent a 26% decline in total enforcement actions compared to the fiscal year 2023. Of those cases, it said, the commission filed 431 “stand-alone” actions, which was 14% less than in the prior fiscal year; 93 “follow-on" administrative proceedings seeking to bar or suspend individuals from certain functions in the securities markets based on criminal convictions, civil injunctions, or other orders, which was 43%less than the prior fiscal year; and 59 actions against issuers who were allegedly delinquent in making required filings with the SEC, which represented a decrease of 51%.
How SEC made $8.2 billion in fines in 2024
Explaining how the $8.2 billion came about, the commission said $6.1 billion came from disgorgement and prejudgment interest, making it the highest amount on record. The remaining $2.1 billion came from civil penalties, making it the second-highest amount on record.
It further explained that 56% of the $8.2 billion financial remedies ordered came from a “monetary judgement obtained following the SEC’s jury trial win against Terraform Labs and Do Kwon, who were charged with one of the largest securities frauds in U.S. history.”
The commission’s Chair Gary Gensler, who recently announced he has resigned his position effective January 20, 2025, was quoted as saying that “the Division of Enforcement is a steadfast cop on the beat, following the facts and the law wherever they lead to hold wrongdoers accountable.” he added that “as demonstrated by this year’s results, the Division helps promote the integrity of our capital markets to benefit investors and issuers alike.”
The statement quoted Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, as saying that “in fiscal year 2024, the Division continued to vigorously enforce the federal securities laws by recommending to the Commission high-impact enforcement actions addressing noncompliance throughout the securities industry and resulting in robust financial remedies.”
The commission added that in fiscal year 2024, the SEC also obtained orders barring 124 individuals from serving as officers and directors of public companies, the second-highest number of such bars obtained in a decade.
SEC chair announces resignation, XRP reacts
Meanwhile, TheRadar earlier reported the chair of the United States Securities and Exchange Commission (SEC), Gary Gensler, has announced his resignation effective January 20, 2025.
In a press statement dated November 21, 2024, and published on the SEC website, which Gensler shared on his X account, the SEC chair described the commission as a mission-driven commission focused on protecting investors.
“On January 20, 2025, I will be stepping down as SEC Chair,” he posted. “The SEC is a remarkable agency. The staff & the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors & issuers alike. The staff comprises true public servants.”
