US SEC touts US$5 billion in penalties after year of crypto dragnet
THE US Securities and Exchange Commission (SEC) said that its enforcement actions during the fiscal year 2023 led to almost US$5 billion in fines and money ordered to be reimbursed to investors, as the agency sued Wall Street brokerages and many of the largest players in the crypto industry.
The SEC said on Tuesday (Nov 14) that the total penalties it won between October 2022 and Sep 30 was the second highest amount on record. In a statement, the regulator highlighted its actions involving digital assets, cybersecurity and Wall Street brokerage employees using unapproved communications platforms to conduct business.
“The investing public benefits from the division of enforcement’s work as a cop on the beat,” SEC chair Gary Gensler said. The agency said that it filed 784 enforcement actions, which represented a 3 per cent increase from 2022.
The agency’s focus on crypto has led some in the industry to consider Gensler its top enemy in Washington. During fiscal 2023, the SEC brought a civil case against FTX co-founder Sam Bankman-Fried. The regulator’s action against the former FTX frontman has taken a back seat to the Department of Justice’s criminal charges.
In fiscal 2023, the SEC also filed lawsuits against a slate of other major crypto players, including Binance Holdings and its chief executive officer Changpeng Zhao, as well as Coinbase Global. Binance, Zhao and Coinbase have all denied wrongdoing and asked for the regulator’s cases to be dismissed.
Despite their high profile, crypto actions only represent a sliver of the work of the regulator’s enforcement division. During 2023, the agency also announced settlements with top Wall Street brokerages for their use of unmonitored communications, and against auditors for allegedly breaching audit standards.
The agency has said its enforcement actions resulted in a record US$6.4 billion in fiscal 2022 and US$3.9 billion in 2021. BLOOMBERG
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