The Securities and Exchange Commission (SEC) achieved a record $8.2 billion in financial remedies in 2024, an unprecedented high. This total includes $6.1 billion in disgorgement and prejudgment interest, marking the largest amount on record, and $2.1 billion in civil penalties, the second-highest amount historically. Notably, around 56% of these financial remedies stemmed from a monetary judgment following the SEC’s jury trial victory against Terraform Labs and Do Kwon, charged with one of the biggest securities frauds in U.S. history.
The SEC also took significant actions to uphold corporate governance standards, imposing officer and director bars on 124 individuals, the second-highest figure in a decade. SEC Chair Gary Gensler remarked on the enforcement division’s role in maintaining market integrity, benefiting investors and issuers alike.
In fiscal year 2024, the SEC addressed recordkeeping cases, including actions on off-channel communications, amounting to more than $600 million in civil penalties across over 70 firms, marking the agency’s first charges against municipal advisors for recordkeeping violations. Since the initiative’s inception in December 2021, it has resulted in more than $2 billion in penalties against over 100 firms.
The SEC also investigated Marketing Rule violations, leading to settled charges against over a dozen investment advisors. For more detailed information, visit the original article on ThinkAdvisor. Related stories include “Wall Street’s Crypto ETF Crew Is Ready to Roll” and “Schwab Eyes Spot Crypto Trading Once Regulations Change.”