The SEC’s Record Year of Enforcement Actions
During fiscal year 2023, the U.S. Securities and Exchange Commission (SEC) filed 784 enforcement actions, resulting in $4.9 billion in penalties. From this amount, $930 million was distributed to affected investors. The SEC also received a record 18,000 reports of violations, a 50% increase from the previous year.
Over 40,000 complaints and requests were submitted to the SEC during this period. The agency awarded over $600 million to informants who reported illegal activities. Notably, major fines were imposed on companies like Wells Fargo, HSBC, Scotia Capital, and Danske Bank for various violations.
Crypto Fraud Charges and Lawsuits
The SEC also utilized its powers to freeze assets in cases related to crypto fraud. It filed charges against Terraform Labs, Hex, PulseChain, PulseX, FTX CEO Sam Bankman-Fried, and other executives. Lawsuits were also initiated against companies offering unregistered securities through crypto asset lending or staking programs.
Hot Take: Increased Enforcement Efforts by the SEC
The SEC’s aggressive enforcement actions and significant penalties demonstrate a growing commitment to regulating the crypto industry and protecting investors from fraudulent activities. This heightened scrutiny could impact how companies operate within the crypto space and may lead to increased compliance efforts across the board.
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