Securities and Exchange Commission

Last Updated on 4 weeks by newseditor

In its most recent report, the US Securities and Exchange Commission (SEC) stated that the number of enforcement actions filed in the fiscal year 2023 (FY2023) surpassed the previous record set in the financial year 2022 by 3%.

Prominent figures in the cryptocurrency space were targeted in a few enforcement proceedings, with charges against executives and companies ranging from securities crimes to fraud. Below, we explore the SEC’s significant advancements made in the fight for financial justice.

Securities and Exchange Commission Enforcement Actions Soar: Analyzing the Fiscal Year 2023 Landscape

In FY 2023, the Securities and Exchange Commission filed 784 enforcement actions compared to 760 in the previous fiscal year, and the Commission was awarded $4,949 billion in financial remedies. Disgorgement and prejudgment interest accounted for the majority of the total, or around $3.4 billion, while civil penalties totalled $1,580 billion.

After the regulator reported its highest-ever financial remedies at over $6 billion in the previous fiscal year, the SEC claims that the financial remedies ordered in FY 2023 were the second highest in the agency’s history.

In addition, the Commission gave affected investors $930 million, marking the second year in a row that the agency has given out more than $900 million.

During the reporting period, whistleblower payments also increased. A total of $600 million was given out in a single year, with one recipient taking home about $279 million—the biggest prize ever given to a single person in the SEC’s program. 

SEC’s Cryptocurrency Crackdown: Charges, Settlements, and Regulatory Intensification

The US regulatory agency stepped up its enforcement actions against the cryptocurrency industry as the SEC filed charges and reached settlements with major institutions, including Wells Fargo, Scotia Capital, Goldman Sachs, Citadel Securities, and HSBC.

Top cryptocurrency companies and people were charged by the SEC with fraud, securities crimes, and unregistered operations. FTX founder and former CEO Sam Bankman-Fried, along with other high-ranking officials of the defunct crypto exchange and Terraform Labs and its inventor, Do Kwon, were among the well-known examples.

Additionally, Richard Heart and his three companies, Hex, PulseChain, and PulseX, were charged by the SEC with fraud and selling securities without a license. Kraken, Celsius, and Nexo are among the other cryptocurrency companies that were accused of conducting unregistered securities offerings. Nexo settled for a $22.5 million civil penalty, while Kraken agreed to pay $30 million in disgorgement, a civil penalty, and prejudgment interest to the SEC.

The Securities and Exchange Commission filed complaints in June against Coinbase and industry heavyweight Binance, whose CEO Changpeng Zhao denied the allegations and sought to have the case dismissed. The Commission strongly condemned both companies.

Takeaways

The cryptocurrency industry came under increased regulatory scrutiny this year, and well-known people and companies are facing accusations ranging from securities crimes to fraud. As the SEC obtains the second-highest financial remedies in its history, the dynamic situation necessitates constant attention and flexibility to navigate the financial markets’ intricacies.

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