SEC Crypto Enforcement Imposes $5 Billion Fine In 2023: Report

Key Points:

• The SEC crypto enforcement in fiscal year 2023 resulted in fines and reimbursements of nearly $5 billion, targeting Wall Street brokerages and prominent players in the cryptocurrency industry.
• The SEC emphasized its actions related to digital assets, cybersecurity, and the use of unapproved communication platforms by Wall Street brokerage employees.

The SEC crypto enforcement in fiscal year 2023 resulted in fines and reimbursements of nearly $5 billion, targeting Wall Street brokerages and prominent players in the crypto industry, as per BBG.

The US Securities and Exchange Commission (SEC) announced that its enforcement actions in fiscal year 2023 resulted in fines and reimbursements totaling nearly $5 billion. The agency targeted Wall Street brokerages and prominent players in the cryptocurrency industry. This amount of penalties is the second-highest on record.

The SEC emphasized its actions related to digital assets, cybersecurity, and the use of unapproved communication platforms by Wall Street brokerage employees. SEC Chair Gary Gensler highlighted the importance of the division of enforcement’s work in protecting the investing public. The agency filed 784 enforcement actions, representing a 3% increase from the previous year.

SEC Crypto Enforcement Imposes $5 Billion

The SEC’s focus on cryptocurrencies has prompted some to view Gensler as a prominent adversary in Washington. In fiscal year 2023, the SEC brought a civil case against Sam Bankman-Fried, the co-founder of FTX. However, the regulator’s action against Bankman-Fried has taken a back seat to the criminal charges filed by the Department of Justice.

During the same period, the SEC also filed lawsuits against other major crypto players, including Binance Holdings Ltd., its CEO Changpeng Zhao, and Coinbase Global Inc. All parties have denied any wrongdoing and requested the dismissal of the regulator’s cases.

The SEC reported record-breaking enforcement actions in fiscal year 2022, totaling $6.4 billion, and $3.9 billion in fiscal year 2021.

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