News

SEC Charged 30 Crypto-related Enforcement Actions In 2022

Key Points:

  • According to a recent report from consulting company Cornerstone Research, the Securities and Exchange Commission took a record number of enforcement proceedings relating to cryptocurrencies in 2018. This is an increase of 50% from 2021.
  • Only in 2020, when the SEC brought 79 such cases, beat last year’s record of 30 crypto-related enforcement actions.
  • In its crypto enforcement operations, the agency has received increasing support from numerous international agencies under the Gary Gensler administration.
According to a report from Cornerstone Research, the Securities and Exchange Commission continues to prioritize crypto-related enforcement under Chair Gary Gensler, bringing 30 enforcement actions against participants in the digital asset market in 2022—an increase of 50% from the 20 actions brought in 2021 and the highest number since 2013.

According to the report, the SEC filed 24 lawsuits in federal courts in the United States and six administrative cases in 2022. Particularly, the number of lawsuits rose from 14 the year before.

Initial coin offerings (ICOs) were the subject of 14 of the 30 enforcement actions in 2022, and fraud allegations were included in more than half of these ICO-related enforcement proceedings. Additionally, the SEC filed groundbreaking charges in 2022 relating to insider trading and market manipulation in the cryptocurrency area.

Only in 2020, when the SEC brought 79 such cases, beat last year’s record of 30 crypto-related enforcement actions. Fraud and unregistered were the most often reported claims. 30 enforcement actions were taken, of which 70% involved fraud, 73% an unregistered offering, and 50% both.

Simona Mola, the report’s author and a principal at Cornerstone Research, said:

“Under Chair Gensler, the SEC has sharpened its focus on cryptocurrency lending and trading platforms and decentralized finance platforms. As Chair Gensler has noted, the ‘runway is getting shorter’ for crypto intermediaries to register with the SEC. This could lead to more enforcement actions coming from the SEC’s Crypto Assets and Cyber Unit, which recently expanded its workforce to investigate securities law violations in the crypto markets.”

Indeed, the agency has heavily targeted the majority of crypto companies over the past year, with Gensler that the majority of cryptocurrencies are securities, which has led to backlashes in the community.

The allegations against a former employee of Coinbase, his brother, and a friend for allegedly running an insider trading scam were among the major cases launched last year. Another case was brought in December against former FTX CEO Sam Bankman-Fried for allegedly defrauding investors.

The report adds that the SEC has taken 127 enforcement actions since its first cryptocurrency-related enforcement action in 2013 until the end of 2022, including 82 litigation actions and 45 administrative proceedings against participants in the digital asset market.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Gate.io Shatters Records in Total Trading Volume in Q3 2024, with Its User Base Surpassing 17 Million

In the third quarter of 2024, despite a challenging market environment, Gate.io maintained strong growth…

1 hour ago

MEXC Champions the Future of Crypto Content Creation at CCCC

MEXC is proud to partner with the inaugural Crypto Content Creator Campus CCCC event, taking…

1 hour ago

Dtec Announces Global Partnership with DİZAYNVIP to Elevate AI-Driven Mobility Design  

Dtec and DİZAYNVIP partner to merge AI technology with luxury vehicle design, revolutionizing smart mobility…

2 hours ago

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

6 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

9 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

11 hours ago

This website uses cookies.