The SEC levied a record $8.2 billion in penalties this year

The SEC just released its version of a Christmas letter, outlining its accomplishments for the year. And let’s just say, though your little cousin may have made the honor roll, unless he prosecuted a multibillion-dollar crypto fraud, he’s got nothing on Gensler & Co.

In fiscal year 2024, the SEC levied $8.2 billion in “financial remedies,” the highest amount in its history. More than half was related to its April jury trial win over crypto company Terraform Labs. The SEC found that Terraform lied to investors about the strength of its crypto asset, UST, and the company and its founder, Do Kwon, agreed to pay more than $4.5 billion in penalties.

The SEC undertook 583 enforcement actions in FY 2024, 26% fewer than in FY 2023. It received more than 45,000 tips and referrals, the highest amount in its history, around 24,000 of which were whistleblower tips. (Interestingly, the SEC noted that more than 14,000 of the whistleblower tips “were submitted by two individuals.”)

Other major SEC actions this year include:

• A $249 million settlement with Morgan Stanley and executive Pawan Passi, whom the SEC charged with leaking confidential information about block trades.
• A $100 million settlement with German software company SAP over violations of the Foreign Corrupt Practices Act.
• A $100 million settlement with FirstEnergy Corp., which it charged with fraud and participation in a political corruption scheme. FirstEnergy made $60 million in payments to a 501(c)(4) organization controlled by former speaker of the Ohio House of Representatives John Householder in exchange for political favors, the SEC asserted.
• $79.8 million in penalties against Macquarie Investment Management Business Trust, which the SEC charged with fraud after it overvalued mortgages and favored certain clients when making cross trades.
• A $18 million settlement with JP Morgan Securities after it found the bank violated a whistleblower protection rule.