The U.S. Securities and Exchange Commission (SEC) brought 30 enforcement actions against cryptocurrency market participants last year. This is his highest number since 2013, according to Cornerstone Research. report.
According to the report, the number of SEC enforcement actions in 2022 has increased by 50% from the 20 actions initiated in 2021.
Of the 30 enforcement actions, 14 focused on initial coin offerings (ICOs), the alleged sale of unregistered securities, the report found. According to the report, approximately 57% of these ICO-related actions also included allegations of fraud. The SEC said he initiated 127 enforcement actions between 2013 and 2022, 55% of which focused on his ICO.
Fraud and unregistered securities offerings were the most common allegations in most of the SEC’s enforcement actions. Of the 127 lawsuits, 59% claimed fraud, 73% claimed unregistered securities offerings, and 44% claimed both.
The SEC has indicted a total of 79 defendants in 2022. Of these, 79% were individual defendants and the remaining 21% were corporate defendants. The proportion of SEC enforcement actions that seek only individuals increased from approximately 20% between 2013 and 2020 to 35% in 2021 and 50% in 2022 under the leadership of Gary Gensler found in the report.
Since 2013, the SEC has fined cryptocurrency companies a total of $2.61 billion, of which more than 9% or $242 million was fined last year alone.
According to the report, 44% of the 82 lawsuits filed by the SEC against cryptocurrency-related companies and individuals since 2013 have been filed in New York. However, in recent years, the SEC has increasingly filed lawsuits against cryptocurrency respondents in other states, the report says.