The U.S. Securities and Exchange Commission
NEW YORK, November 22, 2024 – The United States Securities and Values Commission (SEC) reached a historic milestone in 2024, raising $8.2 billion in financial resources, the highest in its history. This total includes $6.1 billion for disadministration and bias and $2.1 billion for civil sanctions, as reflected in the organization’s annual performance report.
Despite these record figures, the ESA’s compliance activity decreased, with 583 measures presented in the year ending 30 September, a 26% decrease from 2023. Much of the financial total was attributable to a $4.5 billion agreement with Terraform Labs and its founder Do Kwon, although the SEC could not recover the total amount due to ongoing bankruptcy processes by prioritizing cryptographic loss claims.
President Gary Gensler stressed the SEC’s commitment to hold the authors accountable, noting that Prosecutor 2024 saw 124 people prevented from serving as public servants or directors of public enterprises. This figure is the second highest in ten years, consistent with the organization’s approach to individual responsibility. Gensler, who came down in January, stressed the role of the SEC as ”a firm police in defeat. ‘
The Agency’s implementation strategy has paid particular attention to trends such as off-channel communications, reporting safeguards and corridor compliance. A Cornerstone Research report found that off-channel communications violations accounted for 22 out of 38 cases from targeted application bars. In addition, violations of the complainant’s and aposts’ rules; rose to seven cases, as against three in the Public Prosecutor’s Office and the Office of the Apost; 2023.
Monetary sanctions against public corporations and subsidiaries reached $1.5 billion, exceeding the $1.3 billion raised the previous year. It should be noted that 75 per cent of the accused in the cases resolved cooperated with the SEC investigations, the highest percentage since 2019. The average number of regulations increased to $19.8 million, reflecting the Agency’s evolving implementation approach to prioritize cooperation and effectiveness.
ESA’s implementation efforts highlight its dual emphasis on financial accountability and procedural reforms. These initiatives, together with penalties that set a precedent, mean a strong regulatory environment as the organization uses increasingly complex cases of financial misconduct.
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