SEC Targets Crypto Giants and Celebs in Record Enforcement Year

The Securities and Exchange Commission (SEC) has concluded what it deems a “highly productive and impactful year” with a significant crackdown on the cryptocurrency industry. Throughout the fiscal year 2023, the SEC pursued enforcement actions against prominent figures and celebrities, reflecting a steadfast commitment to addressing threats within the crypto space.

In a notable uptick from the previous year, the SEC filed a total of 784 enforcement actions, marking a 3 percent increase. This surge in activity was particularly directed at the crypto sector. The enforcement division of the SEC played a pivotal role, recommending actions spanning a broad spectrum, ranging from crypto fraud to unregistered crypto offerings and instances of celebrities unlawfully promoting cryptocurrencies.

Among the high-profile names targeted by the SEC were crypto firms such as Coinbase and individuals like Sam Bankman-Fried, alongside celebrities like Kim Kardashian. SEC Chair, Gary Gensler emphasized the significance of the Division of Enforcement’s role, describing it as a “cop on the beat” that benefits the investing public. Gensler asserted that the SEC’s effectiveness is evident in the accountability it imposes on wrongdoers by diligently following the facts and the law.

Gensler’s consistent messaging has emphasized the necessity for crypto firms to register with the SEC, with his assertion that a significant portion of cryptocurrencies should be classified as securities. At DC Fintech Week, Gensler cautioned against the prevalence of “multiple notorious fraudsters” within the crypto sector.

The SEC’s enforcement actions extended to several notable entities and figures in the crypto industry. Charges were brought against Terraform Labs and its founder Do Kwon, former FTX CEO Sam Bankman-Fried, and crypto lender Celsius, among others. Exchanges were also under the agency’s scrutiny, with charges filed against Bittrex, Binance, Beaxy, and Coinbase.

Regarding financial resolutions, the SEC accomplished a significant milestone, securing $4.949 Billion—an agency record. Additionally, the SEC underscored its dedication to safeguarding investors by disbursing $930 Million to those affected by misconduct in the preceding year.

Beyond the crypto sphere, the SEC extended its reach, initiating record-keeping-related charges against financial giants Wells Fargo and HSBC. Additional charges were filed against Citadel Securities LLC, focusing on inaccurate data, and fraud charges were brought against the former CEO of McDonald’s.

The SEC’s ongoing proactive regulation and scrutiny of the crypto industry emphasize its dedication to upholding market integrity, safeguarding investors, and ensuring compliance with regulatory standards. The cryptocurrency sector remains a key focus for regulatory initiatives, with a strong emphasis on accountability and adherence to established legal frameworks.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.